Page 45 MLEN SPRING 2020 Page 45 If gold is the darling of the markets then why hasnt the price spiked closer to 2000 One suggestion is that institutional investors in cluding banks continued to short the price into June and their short contracts forced them to cover their bets while they lined up again to buy even more papergold con tracts through August Despite the volatility and unpredict ability of gold average investors and massive hedge funds continue their love afair with the yellow met al Open interest the total number of outstanding contracts held by market participants measures the fow of money into the futures mar ket remains high in fact if you measure it against the global sup ply of physical gold the demand outranks supply And the fnal word on gold for the balance of 2020 might rest with how much paper money is printed out of thin air by central banks around the world Historically there are those who recall that US President Richard Nixon closed the gold window in August 1971 The economic down turn that followed led to the crisis of confdence that President Jim my Carter had to struggle with In 2020 the same conditions are emerging Central banks are print ing fat currency all while the Cov idrelated economic collapse does lasting economic and psychological damage What does this mean for you wrote SprottMoney com analyst Craig Hemke in a recent blog W ell there s one last bit of history that you need to recall Even as nominal interest rates rose in the 1970s they were outpaced by the priceinfation brought about by too much fat chasing too few goods Thus the stagfation of the 1970s was a boom period for precious metals and the companies that mined them Hemke reminded readers that the gold price moved from the Bretton W oods peg of 35ounce in 1971 to 185 in 1975 It then pulled back to near 120 before soaring to 800 by the end of the decade he wrote The balance of 2020 and 2021 looks like a wild ride continues U N D E RG ROU N D M IN ING E Q U I P MEN T W O RL D W I D E D T 2 6 N M IN E T R UC K D U X M A C H IN E R Y C O R P O R A T ION 6 1 5 L a v o i s i e r R e p e n t i g n y Q C C an a d a J 6 A 7 N 2 1 4 5 0 5 8 1 8 3 4 1 w w w du x m a c h i ne r y co m W i t h 5 0 y e a r s o f e x p e ri e n c e D U X o f f e r s a f u l l r a n g e o f p r o d u c t s d e si g ne d t o m e e t t h e ne e d s o f m i n i n g a n d t u n ne l l i n g p r o j e c t s w o rl d w i d e C o n t a c t D U X t o d a y f o r f e l d p r o v e n u n d e r g r o u n d h a u l a g e u t i l i t y an d s c al i n g s o l u t ion s Gold Price continues encouraging yet confounding pace Congratulations Ontario Mining W eek and thank you to our Frontline W orkers for keeping us safe W ord on gold for balance of 2020 may rest with how much paper money is printed