Gold $15k?


A couple of gold bugs talking it up:

Both of these blokes are from the Austrian economic school so you need to be careful of their more extreme price projections.

I don’t see any return of the gold standard nor erosion of the USD as the global reserve.

But I can still see gold shooting much higher on negative interest rates (real and nominal) and a falling USD (which will require a better recovery than we have now).

My basic take on gold is that it operates as the undollar and is leveraged to the relative strength or weakness of the underpinnings of the USD, largely monetary and fiscal.


So long as there is instability in those inputs, gold should climb.

How high who knows!

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.