In the analysis of day-to-day markets, it is easy to lose site of the fact that since 1720, gold has, on average, backed the dominant central bank’s liabilities by 35% (by 29% since gold was “demonentized in 1971). With gold at $1340, that figure stands at 8%. If gold were to quadruple it would be fairly priced for no rmal times – and times are highly abnormal. If the economy is indeed in inflationary l aunch mode, with Yellen captain of the dollar, gold could rise a lot higher a lot faster than most strategists think possible.