It is about gold again.... Gundlach's case for gold

Been thinking about the Gundlach interview. In the interview, Gundlach said something along the line that gold is becoming an asset class. No one calls him crazy these days when he recommends gold.

The US Fed is stuck. The easy way out is yield curve control / Operation Twist. USD will take the hit.

At the same time, mining/gold stocks have been under the radar for some time.

Some charts below worth a think.... Historically, gold performed very well when world order was in flux (Pic 1 from Tavi Costa).

Crescat has come out with its $20000 price target for gold over 4 years. Note how it came up with its price forecast e.g. M2 or Gold to S&P500 ratio. See Pic 2 + Pic 3. Granted, if you back test enough, you can find any relationships.

Original links below:

https://www.linkedin.com/feed/update/urn:li:activity:7512164908340518912/

https://www.crescat.net/the-price-target-for-gold/

At the moment, gold is under pressure due to Fed hiking so higher real rates = bad for gold. Eventually, it will change as the fundamental forces in place are far too powerful and the Fed will yield. Gundlach figures if rate hikes to over 6% (30-year = 5.6% now)... something will have to give...

Bottom line => Gold is still a small asset allocation for most folks.... As demand / adoption rises, gold price will pick up. How much ? Depends on how wobbly the world gets......