When we talk about gold and its future prospects, we tend to focus on the latest event, economic news, or central bank pronouncement. We debate whether the Fed will raise or lower rates. We try to project the impact of Brexiton the price of gold. And we pour over the latest job numbers and other economic data to gauge the health of the economy.
Of course, all of these things do affect the price of gold, but oftentimes these factors only have short-term impacts. There are fundamentals that affect the price of gold in the long-term that often get drowned out by the noise of squawking talking-heads.
The gold supply is one of those fundamentals often lost in the shuffle. Every indication is that it’s poised to shrink, and that could be more significant for the future price of gold than whatever latest news we’re obsessing over.
This post was published at Schiffgold on JULY 21, 2016.
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