- Central banks are slowly introducing the markets to higher interest rates, but this is just due to inflation and thus the effect on gold will be positive.
- Since 1971, the trend for gold, monetary policy, and government debt burdens is clear.
- Portfolio exposure to gold of 7.5% should be seriously considered.
Gold prices are difficult to forecast as anything can happen, but as I have already written about how gold should be a part of every portfolio because it is a perfect hedge for economic and monetary turmoil, I’ve decided to write about the current position of gold in relation to economic forces in order to better determine how much of a portfolio should be exposed to gold. You can find my reasoning behind owning gold miners in my article available here. More →