Gold Fundamental Price
Monetary Metals’ Fundamental price seeks to back out speculative forces in the gold market to reveal the underlying physical supply and demand picture. The degree of divergence between the market price of gold and the Fundamental price is, in our opinion, an indication of market exuberance or pessimism.
The Fundamental price is computed according to a model based on our economic theory. We believe that this model reflects the forces of supply and demand in the physical market however there is no guarantee that the market price will move to the Fundamental price quickly or ever.
Gold Premium/Discount to Fundamental
This chart shows the degree to which the market price diverges from the Fundamental price. Positive values indicate that market prices are above our Fundamental price and this “premium” is shown in red as it reflects our opinion that the gold price may be overvalued. Negative values indicate that market prices are below our Fundamental price and this “discount” is shown in green as it reflects our opinion that the gold price may be undervalued.
3 Month Chart of Gold Premium/Discount to Fundamental
3 Year Chart of Gold Premium/Discount to Fundamental
Max Chart of Gold Premium/Discount to Fundamental