The trade-off in the risk/reward for gold and gold mining equities is improving, as central banks push the current iteration of the post-World War II Bretton Woods financial order towards its limits. Bretton Woods began as a gold exchange standard, which pegged the US dollar to gold at $35/oz until 1968. The framework required modification after monetary discipline was jettisoned by the US, and policy coordination between the US and other major economic powers broke down. The peg to the gold price became unsustainable and a bull market in gold, lasting more than a decade, ensued.
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Gold and Debt Cycles
- Published:
06 Nov 2019 -
Author:
Paul Mylchreest -
Pages:
10
The trade-off in the risk/reward for gold and gold mining equities is improving, as central banks push the current iteration of the post-World War II Bretton Woods financial order towards its limits. Bretton Woods began as a gold exchange standard, which pegged the US dollar to gold at $35/oz until 1968. The framework required modification after monetary discipline was jettisoned by the US, and policy coordination between the US and other major economic powers broke down. The peg to the gold price became unsustainable and a bull market in gold, lasting more than a decade, ensued.