To be a gold investor one must possess the virtue of patience. You would think with the amount of debt and money printing that has happened since the beginning of the pandemic we would have seen gold go a lot higher. Gold after all is supposed to do well in an inflationary environment. And aren’t we seeing higher inflation now as the price of everything is going up. “Don’t worry, it’s just transitory”, the Fed keeps telling us.
Gold did have an impressive 20% run during the beginning of the pandemic, peaking at just over US$2000 an ounce before drifting back down the mid 1700’s, which is roughly where it sits today.
It’s been quite boring being a gold bug of late – there will be days when gold prices move up 2% and there is excitement in the market that gold has finally broken out, but these gains are lost a few days later. This can really eat away at any optimism, especially when gold equities keep selling off and seem to go lower and lower. However, things aren’t as bad as you think for gold if you sift through the market noise.