Can gold outpace monetary inflation?
Negative real rates are driving gold higher. The real cause is monetary inflation. More dollars, same amount of gold, = higher price of gold. You could probably say the same for many different commodities.
So, how can you make a killing off of gold? Your gains in gold should theoretically be erased by the stealing of your money through money printing.
So, I have to conclude, the only way to actualyl gain wealth off of gold is 1) our economy is so productive that the price deflation helps offset monetary inflation (lol)
2) the only argument left is that the price is being heavily manipulated downward.
So, if only #2 can explain how to get rich and not merely ward off inflation...how do you come up with the target price for gold? Gold will always go up in price (I think) because money will always be printed. So I cant ever be too bearish on it. But wheres the 'top'? When does it get more expensive than the manipulation? do you simply divide outstanding dollars by outstanding gold (which would put gold at like 10k/oz).
What other manipulation is keeping the price down?