The dollar is down 10% in the last five months in part because the Federal Reserve added $3 trillion to its balance sheet and the U.S. Congress passed $3 trillion in relief packages through May with more to come.
The 2020 federal deficit is $2.8 trillion through July 31. All this compares with a paltry 108 million ounces of new gold mined each year. Even at $2,000 per ounce, that’s only $216 billion, less than 10% of the budget deficit and less than 1% of annual GDP. Gold is very hard to find, and it is increasingly found only in politically dangerous jurisdictions or in difficult geographical locations for mining equipment.
In the earth’s crust, gold is found in only 0.005 parts per million (5 parts per billion) globally. The grade of mineable deposits these days is like finding a needle in a haystack, averaging 1.46 parts per million.