Gold bugs Unite!

Hey there! Let’s dive into an interesting phenomenon that’s been happening with gold. You see, in 2022, gold started to break away from its usual connection with real rates. Now, this might sound familiar to many Emerging Market (EM) investors, as it’s something that happened in the US back in the 1970s.


Here’s the deal: Normally, when real rates go up, it puts a financial burden on a country and its government debt. Surprisingly, this often turns out to be a good thing for gold, rather than a bad thing. It’s like gold finds its own path and shines brighter in these situations.

It’s definitely worth keeping an eye on this interesting development. So let’s watch and see what unfolds. Who knows, maybe gold will continue to surprise us with its unique behavior. Stay tuned!


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