At the moment, money is being printed on a massive scale. The money is flowing into the stock markets and the younger generation is investing it in Crypto.

Am I correct in assuming that Gold is currently undervalued / perhaps even manipulated and will rise sharply in the medium term?

  • 3
    Time will tell if you are correct or not. Nobody here can know with certainty, the only question that matters is do you believe your analysis enough to wager on it.
    – Hart CO
    Oct 19 '21 at 18:00
  • 2
    Look at a graph of gold price history. It varies a lot. The only measure of value is what a willing buyer will pay a willing seller.
    – jamesqf
    Oct 19 '21 at 18:26
  • Gold is currently moving with the value of Treasury bonds. So the Fed taper could increase long-term interest rates but also strengthen the dollar
    – S Spring
    Oct 19 '21 at 19:42

Very little gold is used for important industrial things. Most of it is turned into shiny trinkets, or just hoarded in vaults.

As a result, it's impossible to say what the "correct" price is. So saying that it's "undervalued" or "overvalued" is meaningless. It's value is whatever people are willing to pay for it today.

There are a lot of people who are constantly trying to convince themselves and each other that it's "undervalued". That's because they are the ones hoarding gold. When the price goes up, they congratulate each other on buying when it was undervalued. When the price goes down they speak of dark forces suppressing the true price for the benefit or governments or powerful organizations.

  • 1
    It is easily arguable that every non-industrial use is actually valueless and therefore it is massively overvalued.
    – user253751
    Oct 21 '21 at 16:29

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