Gold: what’s behind the boom? – Michael Roberts

“Where does all this end?  First, it ends if the US dollar does not continue to fall – and actually since July, the dollar index against other currencies has stabilised at a level that is close to its historic average. 

“Second, it ends this time if the world economy goes into a slump.  That would kill inflation and so boost the dollar.  In slumps, the gold price can rise as an asset to hold (hoard) in crises, waiting for better times.  But in its current boom, gold is increasingly driven by speculative demand.  Such speculation will collapse in a slump and so will stock, bitcoin and gold prices.”

---