All the book money tied up in various financial assets seems to be afraid of a collapse of the monetary system and is trying to find its way into real tangible assets.
Here’s a small illustration of the problem (all figures without guarantee — please report any errors):
All tangible assets on this planet have a value of €550 trillion. This includes: private real estate (€315 trillion), commercial real estate (€40 trillion), land (€20 trillion), forests (€4 trillion), infrastructure (€100 trillion), and raw materials (€70 trillion).
All financial assets on this planet have a value of €855 trillion. This includes: stocks (€115 trillion), bonds (€140 trillion), derivatives (€600 trillion).
The total value of all the gold in the world amounts to €20 trillion.
So, one can see that if even a small portion of global financial assets is shifted into gold, there is still enormous upward potential.
What is your take on that? Correct me with better numbers if possible.