The Present and Future of Gold - February 2025

     Gold has been the most fundamental investment tool that protects savings against inflation since the beginning of history. And it fulfills this function also against US inflation.

     And in some periods, it can surpass this function of protecting savings and become a real investment object, that is, it can play to the top in terms of return among all other investment tools.

     We last experienced this situation in the ten-year period between 2001-2011. During this period, gold increased tenfold from approximately 200 to 2000. Another ten-year period in which a horizontal course prevailed passed. And now, let's see how many years, we have entered a new upward trend.

     Our chart is on a logarithmic scale. You should use the logarithmic scale when making such long-term examinations.

     Now let's continue with a table. With the last increase, the total market value of physical gold has exceeded 20 trillion dollars. Bitcoin's value is at $1.92 trillion, which is 9.4% of gold. When we look at the total market value of all currencies, we come across a value of $3.19 trillion, which is 15.66% of gold.

     And as you know, there is a lot of paper gold in the form of ETCs, ETFs, gold certificates, gold accounts, gold funds, futures, and options. In January, the ratio of this paper gold to physical gold was 126.77 to 1. In other words, there were 126.77 ounces of paper gold in the investment world for one ounce of physical gold. In February, this ratio increased by 1.14% to 128.22 to 1.

     When we add this amount held as paper gold in accounts, the total amount of money invested in gold in the world reaches $2.6 quadrillion. When we look at it this way, the total value of Bitcoin is 7/10,000 of gold and the total value of coins is 1.2/1,000 of gold. These are negligible amounts compared to the huge size of gold investment. In other words, calling Bitcoin virtual gold is not compatible with reality. Virtual gold is not Bitcoin, but gold itself, held in paper form.

     Bitcoin and other coins are something else. We will discuss this in our coin broadcast in the coming days.