Roger Waters, once the leader of the legendary Pink Floyd, released a solo album entitled “Amused to Death” in the 1990s. Looking at some data, we would describe the 2010s rather as “Indebted to Death”. What does it mean for the gold market?

In the last edition of the Market Overview, we wrote about the debt cycles. In this edition of the Market Overview, we will continue this topic, analyzing the current dynamics in the U.S. debt. In particular, we will focus on the federal debt, which has just surpassed $21 trillion, and the margin debt, which has been recently rising as well.

Based on Damodaran’s classification of investments and his distinction between pricing game and value game, we will determine whether gold is an asset, a commodity, a currency or a collectible. When we establish once and for all the nature of gold, we will be able to formulate a proper philosophy for investing in gold. Adopting an appropriate stance will enable investors not to commit simple mistakes and to boost their gains.