Analyst Interview – Gold: New benchmarks for old

Analyst Interview – Gold: New benchmarks for old

Charles Gibson, Sector Head, Mining, touches on a theory Edison developed in 2009 to predict the long-term price of gold with respect to the total US monetary base. Lastly, he observes that the gold price would have to rise to US$9,904/oz if America’s official stock of gold was required to give full backing to its US$2.6tn total monetary base and that it would have to rise to US$16,942/oz if it was required to cover the US’s net external deficit (excluding gold) of US$4.4trn. He concludes by evaluating types of value destruction in the industry.


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