Physical Gold In Vault Is ‘True Hedge of Last Resort’ – Goldman Sachs

Jon Government

– Physical gold is ‘the true currency of the last resort’ – Goldman Sachs
– ‘Gold is a good hedge against geopolitical risks when the event leads to a debasement of the dollar’
– Trump and Washington risk bigger driver of gold than risks such as North Korea
– Recent events such as N. Korea only explain fraction of 2017 gold price rally
– Do not buy gold futures rather ‘physical gold in a vault’ is the ‘true hedge’
What’s increasing the demand for gold? Is it Kim Jon-Un’s calls for nuclear war? Trump’s tough tweets on government and trade and unleashing ‘fire and fury’ on North Korea? The threat of World War III?
Possibly not, according to Jeff Currie of Goldman Sachs. This is more to do with the market mechanics underlying such events.
Currie released a note arguing that gold’s strong performance of late is less to do with the current perceived risk in the geopolitical sphere and instead from the currency debasement that arises from central banks printing money.

This post was published at Gold Core on September 6, 2017.