It’s been a quiet month for gold, with the yellow metal up slightly, despite a reduction in net longs, minor ETF outflows, and a rally in risk assets. Sentiment has definitely turned though, with a buy-the-dips mentality emerging amongst banks, including UBS and Credit Suisse, whilst Peter Grandich thinks “the mother of all gold bull markets” is only just starting. Whilst gold awaits its next driver (Jackson Hole?), there’s been no shortage of interesting developments in other markets, with negative yielding debt topping USD $13 trillion, prompting Robin Wigglesworth of the FT to note that; “investors are now buying bonds for capital gain, and equities for income”, with bond inflows soaring. We’ve also “celebrated” the 45th anniversary of non-gold backed USD, a period in which nearly all income gains have gone to the top 1% of earners. Interestingly, this has corresponded with a large drop in interpersonal trust attitudes in the USA, and increase in regulation (studies show they go hand in hand), prompting one to recall Tacitus; “the more corrupt the state, the more numerous the laws” (VIEW LINK)

Patrick Fresne

You mention the growing income disparity between the top 1% and the bottom 90% of earners over the past 45 years, but isn't it really just one form of inequality being replaced by another?. For example, in 1971 when Nixon ended the gold standard, the largest gold producing country worldwide was apartheid South Africa, then one of the most inequitable countries in the world. Likewise in Australia the last vestiges of the White Australia policy were only dismantled in the 1970s. Over this period there has also been a marked increased gender equality, with female workplace participation in Australia increasing from around 40% in 1970 to almost 60% today. So although these years have seen a growing income disparity between the top and bottom, at the same time there has also been dramatic increases in racial and gender equality.

Jordan Eliseo

No disagreements from me Patrick regarding the positive steps and increases in racial/gender equality over the past 40 odd years.