Mark Moss looks at gold prices from 2020 to 2024 and finds something strange: gold barely moved during massive inflation, but is rising now when inflation is low. He argues the real driver isn't inflation but collapsing trust, both between nations and within societies. Gold, he says, is becoming a store of value when trust breaks down.
If you look at the chart of gold and you just zoom out a second, you see a different picture. From 2020 to 2024, the gold price didn't go anywhere. And during that time, we saw more debasement than we've ever seen in history, the highest inflation we'd seen in multiple decades. But yet the price of gold did not move at all. Why is gold moving now though? Right now, inflation is extremely low. And to me, the answer really comes down to, as you said, trust. And I think that's the biggest thing. So what we see is massive geopolitical distrust. All the violence we're seeing on the streets of individual people, all the way up to nation states who can't trust each other anymore. Every nation has been scrambling not to find a new currency, but a way that they could hold their value and have trust.
