Gold remains cheap at record high

How expensive is gold? Not very, according to Société Générale’s analyst Dylan Grice, who backs gold to rise to a potential $7,500

Although the gold standard was abolished in 1971, it may remain a useful tool to measure the relative cost of gold. For gold to fully back the US dollar today, it would have to increase to $7,500 per ounce, up 428% from today’s prices.

This gold standard gap may be an important factor for those looking to predict the end of the gold bubble.

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