First published by Money Metals Exchange here: https://www.moneymetals.com/news/2023/12/28/the-golden-constraint-002900
<p><img src='https://www.moneymetals.com/uploads/content/the-golden-constraint-social.jpg'/></p>Gold is considered by many to be either an inflation hedge or an all-risk hedge. Yet, history — recent and long-term — shows that the real price of gold has fluctuated significantly, even violently in recent times. Here I show the real price of gold (the money price of gold divided by a consumer price index).