Range-bound between maybe $1225-$1375 for over a year now. So nearing the upper end. Nice bump today ($20+) to around $1360-65). A little bit of this goes a long way. Doesn’t take much of a stake in the miners to affect a portfolio. If today’s price holds, I’d expect many mining funds to jump 3-4% today - possibly more. The possibility of military confrontation with Russia may be the reason. (Buy bomb shelters, not gold.). However, if it’s the fear-factor, than equities aren’t following suit. S&P is in the green as I write.
Also - Crude has really spiked this week. Brent’s over $70 - after bottoming around $25-$30 a couple years ago. If this rise continues, the recent buyer move towards larger vehicles may be arrested.
If I heard Bloomberg correctly, last month’s PPI rose 0.2% (excluding energy and food). That’s an annual rate of 2.4%. In theory (only) your money would need to earn a 2.4% annual rate (after taxes and investment expenses) to break even. That’s a still low inflation rate compared to the double-digit rates hit in the 70’s, but picking up.
BTW: I don’t subscribe to the sales-pitch & hype about how an ounce of gold “will still buy you a new suit”. A lot of exaggeration / scare tactics used to pitch the stuff to the gullible. Watch for a flood of TV adds now that price has risen. I do, however, view it as a wild card that’s liable to do anything. As such, it may reduce your portfolio’s correlation with other assets you own. (Nice to look at as well.)
