Gold Up 112% Since November 2022 - Why?

[JohnyMac]

It is interesting sitting here in my Lazi-boy watching the gold market increase from ~$1,600- an ounce in November 2022 to ~$3,400- an ounce today. That is a ~112% increase over a 17-month period. Yikes! What is driving this increase you may ask.

Based on some research using the internet, this is what I think prioritized, along with a likely percentage score causing the increase.

> Geopolitical/Economic Uncertainty (30%) highest ranking because gold's safe-haven status drives significant demand during crises, as evidenced by price spikes during events like the Russia-Ukraine war, war with Iran, and U.S. tariff announcements, amplified by the trade war between USA & China today.

>Central Bank Buying (25%) ranks a close second due to its consistent, high-volume demand, which directly reduces the available supply and signals long-term confidence in gold.

> Monetary Policy (20%) is critical, particularly in 2024-2025, as Fed rate cuts and dollar dynamics have immediate price impacts.

> Inflation Hedge (15%) is notable but less dominant, especially for the average John & Jane Doe, as gold's inflation correlation is not always strong, and other factors have been more immediate.

> Supply/Demand Dynamics (7%) and Speculative Activity (3%) are lower because they amplify rather than initiate price trends, with supply constraints being a steady but not primary driver and speculation being more volatile.

What are your thoughts?
 

[Jackalope]

The better question might be, why are our dollars worth less?

[JohnyMac]

Yes Jackalope, you are right, "Why are our dollars worth less?"

Why was the price of a high end business suit in 1933 cost you a one ounce $50- American Buffalo coin while today the same high end business suit costs you a one ounce gold coin? It probably started with Nixon's decision of ending the Bretton Woods system in 1971 due to the EU whining and inflation here in the USA. Remember, inflation is a tax on the proletariat. 

[grizz]

A better question is why not grab up some claims and get your own gold? Talk to BLM or DNR in your state and they can direct you to online mapping sites which show available claims. Around here state claims are under $100 and fed claims are under $300. If you get the claims you can work them yourself, lease them or sell them but that also depends on you local laws and regulations.

Many states have public areas for prospecting which are free. Here in Alaska we also have private claim owners who offer pay-yo-play daily rates to prospect. One of my favorites is Crow Creek, they have really good gold, a museum, gift shop, supply the tools needed if you want them, camping, and when I was there it was around $20 for the day.

Another local is Prospector John. He has a store front offering panning classes and also will take you to his claims and shows you where and how to get the gold. I dont know his prices

In both cases you keep what you find

I have another friend that will let you work his claims for 15% of what you find. I've never been to his claims because they are at least 12 hour drive for me.

Anyway its a fun option if you're into the outdoors and making a few bucks