Loading ...the currency posts.
Gold does indeed track yen/$, that is 100% undeniable. The bigger question is the following…will it stay that way ad infinitum?
Gold is a currency that trades irrespective of supply and demand. The demand part is more transparent these days but the supply side is not. Sprott will tell you that for free.
But we can ignore supply and demand for awhile as well.
Can we ignore Japan’s fiscal situation ad infinitum? Big sovereigns have no default mechanism. If they tell the world we will not pay they crush the globe.
At some point in the near future the world will be forced to look at Japan and ask what comes next and it will more than likely serve as the template. That is probably when gold de-couples from this cozy relationship.