I was listening to Jim Puplava yesterday. He interviewed Felix Zulauf, Founder and President at Zulauf Asset Management AG and a member of Barron’s Roundtable for over 20 years.
The following is not an exact quote of Zulauf....but it is almost exactly what he stated word for word around the 19 minute mark of the interview:
It is true that during the gold standard times in the 1960's all the gold mined in the world represented about 5% of all the market capitalization of global equities, bonds and money markets. And at the recent highs as you said in 1980 at the last extreme of the gold price at $850, it represented about 3% of global financial assets. Right now it represents about 0.6% or 0.7%, something of that order.
To just go back to where it was in the 1980's extreme, and I think usually these trends are dynamic by themselves and they usually end in an excess, getting back to 3% (of global financial assets) would require at current gold prices that we bought 65,000 tons of gold. That is about 20 years of mine production at the current rate of production. Production has not increased in recent years. It's been flat because it is so difficult to get it (gold) out.
I mean it (gold) is not overvalued and its certainly not overowned when you compare it to paper assets.
