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Gold Demand Drives Price
- Gold's price is driven more by demand than supply because nearly all gold ever mined still exists.
- Recently, demand rose substantially due to geopolitical tensions and central bank buying, notably by China.
Mansa Musa's Gold Impact
- In 1324, Mansa Musa I spent so much gold in Cairo that he crashed local gold prices by 20%.
- The price disruption took 12 years to recover, illustrating gold's historical economic impact.
Gold's Role in Portfolios
- Gold is not a precise hedge against inflation or stock market drops in the short term.
- It serves better as a long-term risk mitigant in investment portfolios.