Is Gold a Good Investment? Paper vs Physical Gold Disconnect?🔥🔥💥💥🔥🔥
The Disconnect Between Paper and Physical Gold
The gold market is experiencing an all-time extreme disconnect between paper gold (ETFs, futures, derivatives) and physical gold. Western markets trade paper gold, while Eastern markets, led by China, accumulate physical gold for monetary protection and hedging against sanctions, currency debasement, and global instability.
Why Gold's Bull Market May Still Be Early
Financial analyst Alex Mason argues that gold is undervalued and poised for growth due to:
- Macroeconomic Backdrop: US debt burden, inflation, and global financial instability
- Supply Pressures: Flat mine production, declining discovery rates, and central bank accumulation
- Shifting Incentives: BRICS nations and Europe benefit from higher gold prices
Physical Ownership Matters
Mason stresses that physical ownership is crucial in a world of contracts and counterparty risk. With central banks stockpiling gold and supply tightening, gold's role is shifting beyond a simple hedge.
