Why is the spot price of gold so low?

Discussion in 'Commodity Futures' started by kmiklas, Mar 24, 2021.

  1. kmiklas


    LME gold spot USD1734.40 today 3/24/2021 at 6:55 EDT. This price doesn't make sense to me.

    - Roughly 1/4th of all U.S. dollars have been printed in the last year [1]
    - In other words, the total amount of dollars has increased from about 40T to 50T
    - Why is this price not reflected in gold?
    - Before Corona hit, gold was sitting at around USD1500; so, gold should roughly be sitting at somewhere between 1875 and 2000.
    - Additionally, the price of physical metal coins is up around USD2000/oz (where it should be) [1] [2]. What's with the huge spread between spot and physical?
    - Furthermore, given the shock to the system, and the very real risk that Corona will drag on for another ten years, why is gold so low?
    - Finally, not to harp on the subject, but INFLATION...

    Can someone kindly enlighten me, because IK can't make any sense of this.

    1. https://www.thestreet.com/mishtalk/economics/23-6-of-all-us-dollars-were-created-in-the-last-year
    2. https://online.kitco.com/gold-coins...y-gold-coins&utm_campaign=2017-03-23_kitcoweb
    3. https://www.jmbullion.com/search/?q...ld&filter.instock.low=1&filter.instock.high=1
    Last edited: Mar 24, 2021
  2. ZBZB


    Power, that controls the money supply, can pay to roll over their short paper gold futures every month with the printed money.

    gold follows bond prices which have been falling.
    Last edited: Mar 24, 2021
  3. SunTrader


    Why ask why?

    Buy the physical and be happy ... waiting for the world to implode.

    Unless you are looking to trade gold, in that case who gives a fuck.
    KCalhoun likes this.
  4. KCalhoun

    KCalhoun Sponsor

    A famous talking head said it's partly due to bitcoin as alternative.

    I buy DUST inverse when gold drops
    guru likes this.
  5. I second this question. Gold is, beyond a shadow of a doubt, headed higher. Bigly. Maybe not tomorrow, but soon...
  6. maxinger


    Who knows it might get even lower.
  7. SunTrader



  8. Inflation.
  9. SunTrader


    That's so 1970's. Got to do better.

    Plenty of time since when we had some inflation and Gold did very little.

    And then there were periods where inflation was tame and Gold went up anyway.
  10. themickey


    The reason for depressed gold price is it's all Trump's fault.
    Gold lost its sparkle since Trump lost the vote.
    Trump is selling gold to pay the bills. :)

    Glory days of Trump's gold-plated 757 seem far away as plane sits idle at a sleepy airport

    #10     Mar 24, 2021
    murray t turtle likes this.