Glittering Gold

With its recent rapid romp to over $1,900/oz, gold has easily surpassed the 2011 peak of $1,815/oz. In real terms, gold remains 5% below its 2011 high, and almost 50% below its 1980 peak. Why the melt up? Low interest rates, inflation fears as the Fed’s balance sheets skyrockets, a weakening dollar making gold cheaper in foreign currencies as gold is quoted in dollars, and rising tensions with China.