Are we looking at a situation whereby €600 gold today could be worth, say, $5000/€1000 in a few years time because the USD has tanked against gold and the euro together?
This issue has been covered earlier in the thread. I’ll summarise for you:
Gold is a ‘currency’, albeit a unique one. Personally, I count it (bullion anyway) as part of my range of cash/currency type holdings. To me a 20gram Credit Suisse bullion bar in my pocket is same as €300.
Yes, the big bet is a severe decline in the US$ but the bet really extends to all fiat currencies. People who fear for the purchasing power of their €, US$ or £ income stream are buying gold. People who see overvaluation in traditional assets [stores of wealth] are converting those assets to gold.
For people earning and living in Euros, yes you are betting on the situation you describe; gold rising in euros. However, my belief is that gold will rise against all fiat currencies. E.g. I doubt we’d see €0.20 to the US$, that would be absolute economic chaos unless it happened over many decades in a controlled fashion. Maybe we’ll see €0.50 in our lifetimes, but even at that there would be severe problems.
The bottom line is you always want to own assets that are rising in value vis a vis other assets. Residential property values just about everywhere are wildly exaggerated on virtually any basis and should, at minimum, slowly decline in value from here vis a vis other assets. Same can be said for stocks generally. Bonds, again generally, look like poor value since CB rates are going much higher [despite the fact that they’ll have less effect since its cost-push inflation and inflation expectations have already taken off.]
What’s left then is gold and prec metals, energy of all types incl renewables, base metals, and agricultural commodities, all of which are STILL historically cheap compared to the assets mentioned above.
