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Strategies & Market Trends : Young and Older Folk Portfolio

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To: Max2.0 who wrote (21362)10/16/2025 10:04:12 PM
From: QTI on SI1 Recommendation

Recommended By
stockpickeron

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Re. Why should gold appreciate so much faster than inflation? Its a known valued commodity that has been around for quite a while. Certainly there are uses that consume some quantity of gold but I would think much of it is stored in secured repositories. I am genuinely interested to learn why gold is expected to appreciate at an accelerated rate going forward?


Max, your concerns regarding gold are valid. I had the same concerns as you, especially after looking at the chart and why I waited so long to start a position. However, after doing a bit of research (well reading a few articles on SA and other places), I decided to gradually ease into the GLD position, and only adding based on momentum and when the last add is green by a few percent margin.

Regarding, your question to why gold is expected to appreciate at an accelerated rate going forward. Well there is a thesis that central banks worldwide (esp. in Asian countries) will accumulate gold at a faster rate to meet the levels of developed countries. This would create a multi-year demand for gold.

This is from one of the SA articles that explains the multi-year bull case for gold:

" the bull case here is two-fold. One, it shows that demand is coming from more central banks today than there has been in the past. Two, these Asian central banks still have a long way to go if they want to copy their developed market counterparts. The graphic below shows how the US and European central banks rely heavily on gold, while Asian central banks do to a much smaller degree:


"
Link to the article: seekingalpha.com
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