Incrementum's Ronnie Stöferle told a packed Mining Forum Americas keynote that today's gold market is not a normal cycle but a remonetisation cycle, Mining Forum Live reports. Through the lens of monetary history, he argued, gold is not expensive at all — illustrating with the "shadow gold price": at the pre-1945 legal minimum of 40% gold coverage of the monetary base, gold would be US$21,000 an ounce.
With central banks buying roughly 1,000 tonnes of gold a year and his six remonetisation vectors feeding each other in a self-reinforcing loop, Stöferle said the question for investors is no longer whether gold belongs in a portfolio, "only in what size and in what form."
