Is Gold too Pricy Right Now?
- Blanc
- Mar 31
- 2 min read
Disclaimer:
I’m not a financial advisor. The content shared on this blog reflects my personal opinions and experiences—it is not financial advice or an investment recommendation. Please do your own research and make decisions based on what’s right for you and your financial goals.
After reading my post yesterday, my friend asked me : “Is gold too expensive to buy right now?”
Great question, let me show you several graphs
So… What Is Gold’s value, Really?
Gold isn’t like a stock—you can’t measure it with earnings or a P/E ratio. It doesn’t have cash flow or a balance sheet. But what it does have is something pretty powerful: global trust. People have turned to gold as a store of value for, well, basically forever.
Then… what decides the Gold price?
Supply and demand! When the world gets nervous and starts looking for a safe harbor, demand picks up… and prices usually follow. And this isn’t just about you and me. We’re talking big, global money. When the market cools on growth stories like AI (hello, CRWV— the new AI IPO, was down 10% even with the Dow and S&P are in the green today), that money starts hunting for shelter.
Gold historical price, before inflation adjustment
However, as the arrow points out, It does have two downward-price periods
Before 2000 (prior to dotcom bubble)
2013–2020 (a long, U-shaped dip)
If price drop indicates capital outflow, where does the money go?
Stock market! Check out the graph below. When stocks are hot, gold cools—money flows where it sees growth. I use gold price as a signal for capital direction. If gold goes flat for a while, it might be time to peek back into stocks.
Dow vs. Gold, growth chart, use 1995 as base line
Another chart might make you feel a bit better. Both gold and the dollar are reserve assets. When one goes down and the other goes up, it’s a sign that countries around the world are making adjustments. Weakening the dollar is actually one of this administration’s goals. Yep—you got it!
Gold vs. Dollar
The last chart shows the Gold’s monthly price change from the first month of recession to the end, mostly positive. And keep in mind gold price start rising before the recession.
Gold price by recession length
If history tells us anything, I hope this blog gives you something useful to think about.
Gold isn’t priced by earnings—it’s driven by trust, supply, and demand. When the world looks for safety, gold often shines.
Gold is a signal of capital flow direction. When it flattens or diverges from stocks or dollar, it hints at a shift in capital flow.
History says gold holds up in recessions.
It’s not about timing it perfectly—it’s about knowing what role it plays in your strategy.
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