The gold bulls have been firmly in command over the last few weeks – which if you’re a regular reader you’ll already be very familiar with. This week saw that appeal reach new heights however, with Johns Hopkins University applied economics professor Steve Hanke saying that sentiment is now at the most bullish it has been in 2021, according to the university’s gold sentiment index, known as the Hanke-Confas Gold Sentiment Score.
Hanke said, “When we analyze the news, we are not talking about the general sentiment as it affects the market. We are looking at a particular price discovery process in a particular price of a commodity. This is the first time this has been done. And gold is the most important price of any commodity in the world. Right now, the sentiment is bullish. The money supply has exploded, the velocity of money will be picking up, and we are going to be in for inflation that is at least two or three times the Federal Reserve’s target. And that is bullish for gold.”
Hanke said that terms such as higher inflation, supercycle and volatility are all being used in relation to gold, indicating that confidence in the precious metal is very high. Buy now.