Gold has always excited the imagination and hearts of people, gold's charm being attributed to its beauty and its special qualities and rarity, which have made it into one of the most desired metals, both for items of religious worship and for ornamentation and as a means of payment…

 

And, seriously…. Some opening remarks. Gold has gone up by 5% since the start of the year, and is currently standing at an all-time record price of 1,486.7. Gold has gone up by 85% since September 2008, by 428% since the beginning of 2000.

Since January 1970. gold has gone up by 4,155% (gold or not gold….) By comparison, the S&P 500  went up by only 1,380%  since January 1970.

 

So a round of applause:

 

 

 

 

 

 

 

 

It is said that gold is the best defense against inflation, so we decided to try and test this belief.

In the following graph, we carried out a comparison between inflationary expectations entailed in the American 10-year market (black line, in percentage terms) and the price of gold. It can be seen that there is a visible connection. It is clear that this connection has not been maintained over the years, and this is quite logical – on the one hand, we are looking at expectations which are supposed to move within a defined range, while on the other hand the "thing" is going up relentlessly. So just to calm you, we looked at the behavior during the crises of the last decade, and the connection is identical.

 

 

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