Gold is back, and it has a message for us.

https://www.ft.com/content/bdcb7d8a-e958-4910-9d1b-a6a519812503

It’s not often to see a positive gold article in the traditional media, especially at the Financial Times.

The article suggests that we are in period similar to the 1970’s when central banks were exchanging dollars for gold. Golden Portfolio agrees.

As a recent report by Currency Research Associates noted, “China buying gold and selling Treasuries mirrors how Europe’s central banks began to redeem dollars for gold in the late 1960s as the Bretton Woods System began to break apart.” Indeed, that was the beginning of the last long, sustained run up in gold, between 1968 and 1982, when it rose against both the Dow and the dollar. There are other ways in which that period chimes with today. In 1971 when Richard Nixon, then president, took the US off the gold standard, he also imposed a 10 per cent tariff on imports. This was a kind of unofficial devaluation of the dollar to protect US-made goods from exchange rate fluctuations.