By 
Didier Darcet
4 February 2021

The Second Wave

As for any economic indicator, monetary polices can be viewed from two interdependent yet different angles:

  • Price: the remuneration of money.
  • Volume: the amount of liquidity.

A major “price” signal took place two years ago, announcing the debasement of major fiat currencies and the awakening of gold. Since then, gold has spiked 40%. A “volume” signal took place just one week ago, announcing a second wave of world liquidity in USD intimately correlated with the second wave of the COVID pandemic.

The consequences of the “volume” signal on asset allocation (if it lasts) could be as significant as the one on “price” some two years ago.


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