Bullion to Bytes: The Role of Gold in Online Gaming

Gold has captivated people’s attention for thousands of years. There are several reasons (beautiful and alluring, malleable, etc.), but one stands out. Gold is trusted. Long before digital markets, trading apps, or virtual balances, gold carried the qualities that people look for when deciding whether something has lasting value. It is scarce, durable, widely recognized, and not dependent on a single company or platform to remain meaningful.

That prompts two questions…

What gives something value when you cannot hold it, store it, or measure it? How can we determine the value of something that has no physical attributes?

 Online gaming is one place we can look for answers, because it shows how quickly people rebuild trust using similar logic for valuations. 

WHY GOLD STILL MATTERS 

Gold still matters because it offers a contrast that digital systems cannot fully replicate: it is finite, recognizable, and independent of a digital platform’s health or an issuer’s promises. That is a significant reason why it continues to function as a reference point when people start asking harder questions about what determines underlying values for various goods and services – or, for money, itself. 

Gold does not need much additional explanation. Its appeal rests on basics such as limited supply, resistance to decay, and universal acceptance. More importantly, it sits outside the control of any one digital system.

That independence is part of its strength. Gold does not rely on a login, an issuer, or an interface. It may be priced in markets, but its existence is not tied to the success of a platform. In uncertain periods, that matters greatly. People do not buy gold just because it is shiny or old. They buy it because it has a long record of surviving institutional change, financial shocks, and shifting definitions of money. That is what makes it such a useful benchmark. Gold reminds us that stable value depends on a mixture of scarcity, durability, and trust.

IS DIGITAL VALUE REAL?

Digital economies now operate everywhere. People buy game skins, hold platform balances, collect virtual items, and move money through systems that exist almost entirely on screens. None of this is imaginary in the casual sense. The economic behavior is real. The spending is real. The attachment is often real as well. But the structure is different from gold in one obvious way: the value exists inside a system built by someone else.

That is not a flaw. Functioning economies depend on rules, shared beliefs, and managed access. The important distinction is that digital value tends to be conditional. It works as long as the environment surrounding it works. A virtual balance has meaning because the platform says it does, because users accept it, and because the rules governing it remain stable enough to inspire confidence.

In that sense, digital economies are less like bullion in a vault and more like carefully managed ecosystems. They can be coherent, trusted, and widely used. But they are not independent in the way gold is independent.

SCARCITY GETS RECREATED

One of the most interesting things about digital systems is how often they try to recreate the qualities people already associate with valuable things in the physical world. Scarcity is the clearest example. In a purely digital environment, anything could, in theory, be unlimited. A platform could flood its own ecosystem with endless units, endless rewards, endless access. But that likely weakens the system rather than strengthening it. Values collapse when supply is unlimited and uncontrolled.

Digital systems rebuild scarcity in designed form. They use limited access, restricted balances, controlled issuance, exclusive items, and tightly managed internal economies. None of that is accidental. It reflects a very old instinct: people attach value more easily when supply is bounded and when the rules are clear and stable. Gold achieves this naturally through geologic constraints and the difficulty of extraction. Digital systems achieve it through code, design, and policy. The mechanisms are different, but the human response is similar.

ONLINE GAMING 

Online gaming is a useful example of values in the digital world. Gaming economies often run on internal units: chips, credits, balances, tokens, or other denominated forms of access. These are not stores of wealth in the traditional sense. They are units of use inside a defined system. Their value depends on the integrity of the environment in which they exist and function. 

That environment is critical. It must feel fair and be reliably stable. Users want rules that are clear enough for participation to make sense. Without that, the internal value system starts to look arbitrary. Even inside entertainment-led digital systems, platforms such as Betway casino online still rely on familiar value principles: user trust, controlled internal balances, and confidence that the system itself is fair and stable.

Digital platforms cannot escape the basics that we referred to earlier. For users to attach real values to digital systems and processes, they need to feel that the application and its environment can be trusted. 

THE VALUE OF TRUST – GOLD VS DIGITAL

This is where the comparison becomes more interesting. Gold carries trust partly because it has outlived various systems. Online gaming carries trust only if the system stays convincing. That means the platform must engender trust by providing consistency, recognizable rules, and ensuring that value inside the environment is not being manipulated unfairly. These are things gold has done naturally, by reputation.

In practical terms, the trust comes from structure. Users need to feel that what they see has meaning within the platform, that balances behave predictably, and that the system has not been built merely to create the appearance of value. The more invisible and seamless the system becomes, the easier it is to forget how much of that confidence is manufactured by design.

That is not criticism. It is simply the nature of digital economies. They are built, maintained, and interpreted through platforms rather than through physical scarcity alone.

GOLD VS GAMING

It is worth stating clearly that this comparison has limits. Gold is real money and is important for wealth preservation. Online gaming is entertainment. The internal balances and structures within gaming ecosystems are not investment substitutes, and it would be a mistake to blur that line. Gold exists as a long-duration store of value. Gaming exists inside a designed experience where value is contextual and bounded by the rules of participation.

That distinction is important for serious readers because it keeps the argument honest. The point is not that gaming currencies or balances are some modern equivalent of precious metals. The point is that even digital entertainment systems still borrow from the old architecture of value. They rely on scarcity, trust, and perception because people continue to respond to those foundational concepts, regardless of how new the technology appears.

TRUSTED LOGIC, NEW MEDIUMS 

As digital life continues to expand, these comparisons become more useful. They help explain why some systems feel flimsy while others feel coherent. They remind us that value does not appear just because something is convenient or technologically impressive. It has to be built on recognizable foundations.

Gold remains one of the clearest examples of those foundations in physical form. Digital platforms, including online gaming ecosystems, show how those same ideas are recreated in software. One is ancient and tangible. The other is modern and platform-bound. But both reveal the same thing: value still depends on trust, perceived scarcity, and a stable framework that people believe will hold. The medium may change. The foundations of value rarely do.

(also see Eggs Are Not Dairy; Bitcoin Is Not Money – Only Gold Is)

New Closing Lows For Gold And Silver

Spot gold closed Friday in New York at $4490 and spot silver closed at $67.69. Both prices were new closing lows for the two metals. See the charts below, courtesy of Kitco

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AI Is Bullish On Gold – What About You?

Occasionally, I have asked ChatGPT for its thoughts on certain topics with the intention that it might provide additional perspective to the subject at hand. I did so again. This time I asked about the gold price and what might be expected over the course of 2026…Kelsey’s Gold Facts:  Where are gold prices headed over the course of 2026? Please include some specific target prices and reasonable explanations.” 

ChatGPT: Probabilistic Outlook for 2026…

If we combine macro conditions, historical gold cycles, and current forecasts:

Scenario Probability Price Range
Base case ~50% $4,300 – $5,000
Bull case ~35% $5,000 – $6,000
Bear correction ~15% $3,700 – $4,200

Gold will respond most strongly to these signals:

1. US real interest rates (10-year TIPS)
Gold rallies when real yields fall.

2. Central-bank purchases
If annual purchases stay above ~800–1,000 tonnes, it strongly supports prices.

3. Dollar index (DXY)
Weak dollar = stronger gold.

4. Fiscal stress / debt markets
Treasury market volatility tends to push gold higher.

Bottom line…

A reasonable expectation for 2026 is:

  • Average price: roughly $4,500–$5,000

  • Likely trading range: $4,000 – $5,500

  • Extreme upside scenario: $6,000+

The structural drivers (central-bank buying, monetary instability, and declining real yields) remain strongly supportive of the gold bull market.

BEARISH SCENARIO?

Kelsey’s Gold Facts: Thanks for your input. Your assessments indicate that higher prices are likely for both gold and silver over the remainder of 2026. Is that correct? 

ChatGPT: Yes—that is the general conclusion, with an important qualification.

Based on current macroeconomic conditions, most analytical frameworks suggest that both gold and silver are more likely than not to trend higher over the remainder of 2026, though volatility and interim corrections should be expected.

The probability-weighted outlook for gold indicates:

  • Base trend: upward

  • Likely trading range: roughly $4,000–$5,500

  • Average expectation: about $4,500–$5,000

The main factors supporting higher prices are:

  1. Central-bank gold accumulation
    Central banks have been large net buyers for several years. This creates persistent structural demand that tends to support prices during pullbacks.

  2. Potential decline in real interest rates
    If monetary policy eases or inflation remains elevated relative to interest rates, real yields may fall—historically a favorable environment for gold.

  3. Fiscal and geopolitical uncertainty
    Elevated global debt levels and geopolitical tensions often increase safe-haven demand.

CONCLUSION 

How “realistic” are AI (ChatGPT and others) projections for gold prices? Some subtle provocation is intended. After all, we are looking to “artificial” intelligence for answers. See here for more information about AI price projections for gold and other precious metals.

(also see Silver Price Implosion – What About The Fundamentals?)

Gold vs Silver – Gold STILL Wins

GOLD VS SILVER 

The past year has been wild and crazy for both gold and silver. After peaking at about $120 oz. scarcely one week ago, silver gave up almost 40% of that in one day, with an intraday low at $73. A strong reversal to the upside brought the price back to $84 at the close (January 30, 2026). Silver closed today (February 6, 2026) at $77, down 8% since last Friday’s collapse.

Gold, after peaking at $5500, dropped below $5000 with a loss of about 11% (January 30th) and closed today (February 6th) at $4966, a few dollars below last Friday’s close.

Rather than try to predict what might or might not happen next, let’s take a look at where we’ve been. More specifically, we will compare gold and silver performance since 2016, 2011, 1999, and 1980. As good as silver’s price performance has been, gold STILL wins.

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Crypto Collapse Shatters The Fantasy

(The original version of this article was published at Talkmarkets.com as New Lows For Bitcoin and Ripple )

Cryptocurrencies are collapsing. Just a few hours ago today (Thursday), the price of Bitcoin (BTC-USD) touched $60k, down 23% from its $78k price in my original article on TalkMarkets two days ago. The selloff in Ripple (XRP) was worse. Its price at about the same time as Bitcoin reached its latest nadir, was $1.14 – down down almost 30% from its $1.60 print on Tuesday.

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More Downside For Gold And Silver?

You can bet that most vocal proponents for spectacularly higher gold and silver prices will see Tuesday’s huge intra-day reversals as just another dip in price before the next jump to warp speed.

The longer and more severe the “correction”, the more frequent use of the phrase “temporary setback” can be expected. After all, the fundamentals demand higher prices, right? A day of reckoning is at hand.

The euphoria surrounding higher gold and silver prices seems to know no bounds. I remember how it was in 1980, as those of us in the trade at that time experienced a similar situation.

Notwithstanding the grim circumstances of double-digit interest rates (fed funds at 17.6% in April 1980), consumer prices averaging increases of almost 12% annually for three consecutive years, and enthusiastic calls for the “death of the dollar”, there was a pronounced peak to the price action in hard metals in January 1980.

In 2011, a government shutdown began on July 1st and lasted for twenty days. The gold and silver price peaks in 2011 came amidst similar sentiments regarding government debt, inflation, and the dollar.

Now, here in 2025, we can only wonder whether a similar situation is unfolding. If it is, it might be worth considering what happened after the peaks in 1980 and 2011.

GOLD AND SILVER AFTER PEAKS IN 1980, 2011

The price peak for gold in 1980 came on January 20th at $843 oz. Within a few days, gold was priced in the mid-$600s – a drop of almost $200. That might not sound like much, but it was a decline of more than 20%. A similar decline now would take the gold price below $3,500.

After a few more weeks, the gold price had broken the $500 level. In less than two months, gold had declined by more than 40%. Measuring from its recent intraday peak of $4,355, a similar drop at this time would take gold down to $2,600.

Silver fared worse. After peaking at close to $50 oz. on January 20th, 1980, silver’s price dropped by more than 30% in two short weeks. By February 3rd, silver was priced at $34.75. A similar decline at this time would take silver down to $37.80 by the end of next week.

Gold found temporary stability around $500, but silver continued to plummet, losing 76% in less than four months. Measuring from its recent peak of $54 oz, a similar drop now would take silver down to $13 oz.

Prices for gold and silver declined in nominal and real terms over the next two decades, reaching respective lows of $260 for gold and $4 for silver. The cumulative declines totaled 70% for gold and 92% for silver.

The gold price decline after its 2011 peak amounted to 45 % and the silver price decline was approximately 80%. Similar declines at this time could take gold as low as $2400 and silver as low as $11.

MORE DOWNSIDE FOR GOLD AND SILVER?

Quite possibly, yes, especially when considering what has happened in the past. The specific conditions are not necessarily the same, but they are similar. Also, there are other factors that are more important as to whether gold and silver continue to decline, how quickly, and by how much.

Liquidity concerns and deflation are the bigger forces at work that could stop in a heartbeat the relentless march of inflation-fueled higher asset prices (see No Winners When The Inflation Balloon Pops). As far as gold and silver are concerned, their price increases have outrun the fundamentals for now.

That does not mean they cannot go higher at this point. They could. You might not want to bet against that possibility, but you would be foolish not to be prepared for some sizeable declines. (also see The Case For Gold Has Nothing To Do With Its Price)

Kelsey Williams is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL THE FED

The Case For Gold Has Nothing To Do With Its Price

THE CASE FOR GOLD

The case for gold is straightforward…

Gold is a proven long-term store of value that retains its purchasing power over extended time periods. When used as money (medium of exchange and measure of value), gold acts as a restraint on a government’s propensity to overspend. Also, using gold as money – without government intervention – guarantees price stability.

Gold is practical and convenient, and was money before fiat currencies. Goods and services were priced in ounces and fractional units of gold (grams, grains, etc.). Because the supply of gold is relatively stable and reasonably scarce, the threat of inflation is greatly reduced, although not eliminated. (see Even Gold Is Subject To Inflation)

Gold is not issued by a government or central bank, so it carries no default risk and is immune to political manipulation.

As if that were not enough, gold has additional (secondary) value because it is desired and used for ornamentation and jewelry.

Lots of things have been used as money. Only gold has stood the test of time. Gold’s universal acceptance is independent of government policy or intervention.

Notice that, so far, we have not said anything at all about the price of gold. When gold was the circulating medium of exchange, there was no price for gold. Gold, itself, was the measure of value for everything else.  How much gold you held – not its price – was indicative of your purchasing power, or wealth.

In other words, the gold price has nothing to do with gold’s fundamental value, i.e., its use as money.

HISTORY OF GOLD AS MONEY 

Gold emerged as the money of choice through competition.  Many other things (beads, grains, various industrial metals, etc) were tried throughout history.  For one reason or another, they didn’t work consistently over longer periods of time.

The first gold coins appeared around 560 B.C.  Over time, it became a practice to store larger amounts of gold in warehouses.  Paper receipts were issued certifying that the gold was on deposit.  These receipts were negotiable instruments of trade and commerce, which could be signed over to others.  They were not actual currency but were a presumed forerunner to our modern checking system.

The warehouse proprietors (‘bankers’) decided they needed to find a way to increase their profits.  Earning fees from their depository and safekeeping services wasn’t enough.  Since most of the gold remained in storage and most transactions involved exchange or transfer of paper receipts for the gold on deposit, they decided to issue ‘loans’ of the gold/money to others and charge interest.  The cumulative amounts of gold loaned out could not exceed the amount of gold held in storage.  Hopefully, not too many depositors would ask to redeem their physical gold at the same time.

By this time, there were reasonable indications of just how much gold needed to be kept available to meet the ongoing, day-to-day withdrawal demand.  The warehouses (banks) began issuing loans in the form of receipts backed by the gold held on deposit. That shouldn’t be a problem as long as people continue to trade with their paper receipts. Occasional redemptions of receipts (withdrawals of gold from storage) were met with smiling faces – business as usual.

It seemed to be a workable system.  But apparently, the ‘bankers’ were not content.  They soon started issuing more loans/receipts for gold that did not exist.  Of course, they saw no need to inform anyone of their actions, and the receipts still stated that they were redeemable in fixed amounts of gold.  And when some wanted to take possession of their gold on a physical basis, they could still do so – up to a point.

Questions arose, however, as to the value of the receipts. More and more individuals, companies, and countries opted for real money – gold.  There simply wasn’t enough gold to meet the redemption demands.

As late as the early twentieth century, U.S. paper currency was issued with a clear statement specifying that it was redeemable for specific amounts of gold (and silver) at fixed rates.  In addition, gold (and silver) circulated concurrently with U.S. paper currency and were interchangeable.  One was as good as the other. Supposedly.

In 1933, President Roosevelt issued an executive order “forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States”.  Then, in 1971, President Nixon suspended convertibility of the U.S. dollar into gold by foreign nations.

For more than half a century, there has been no fixed convertibility of U.S. dollars (i.e., fiat currency) into gold (i.e., real money).

THE PRICE OF GOLD

The price of gold in dollars is an inverse reflection of the purchasing power of the U.S. dollar. Under the watchful eye of the Federal Reserve, the U.S. dollar has lost more than 99% of its purchasing power.

The dollar’s loss of purchasing power results in higher prices for goods and services. The gold price reflects the dollar’s loss of purchasing power by continually rising over time, albeit irregularly and in a volatile fashion.

Of particular note is that increases in the gold price come after the effects of inflation have worked their way into economic activity and are readily apparent.   The huge increase in the gold price from $35 oz. to $843 oz. happened over nearly a decade (1971-80) and was reflective of the loss of dollar purchasing power that had occurred over the previous several decades.

The phenomenally huge increase, however, was followed by huge declines. Eventually, more than thirty years later (2011), the gold price peaked again, this time at $1895 oz.

The gold price had more than doubled from its peak in 1980, but the huge price increase did not mean that gold was more valuable. In fact, the value, or buying power of gold at $1895  oz. in 2011 was consistent with its value in 1980 at $843 oz.

Similarly, what one can buy with an ounce of gold today at $3700 is comparable to what one could buy with an ounce of gold in 1980 at $843.

Since 1980, prices have risen more than fourfold. An upscale, new car at $16-18k in 1980 was the equivalent of approximately 20 ounces of gold ($843 times 20 = $16,860). A comparable vehicle today costs closer to $70-75k, and can still be purchased with 20 ounces of gold ($3700 times 20 = $74,000).

CONCLUSION 

The case for gold is the same today as it was centuries ago. Gold is real money; honest money. The price of gold tells us nothing about gold. The gold price tells us the extent to which the dollar has lost purchasing power.

Similarly, it does not matter whether gold is priced in dollars, yen, euros, yuan, etc. The price of gold in any fiat currency is nothing more than a reflection of  changes in the value of that particular currency.

Higher prices notwithstanding, the value of gold remains constant and unchanging. (also see Gold’s Singular Role)

Kelsey Williams is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL THE FED

The USD Is Worthless – Gold Is At $100k!

If the U.S. dollar were to become worthless, what difference would it make if the gold price hits $100,000?

The ten ounces of gold you bought for $30,000 ($3000 x 10) would be worth $1,000,000. Should you sell?

A worthless U.S. dollar means that it has no purchasing power and is unacceptable for trading purposes. What would you do with a million dollars that nobody wants?

Likely, though, there would not be a gold price quoted in U.S. dollars. In fact, by that time, anything that would have been quoted in U.S. dollars would need to be repriced in something else, i.e., another fiat currency, crytocurrency, gold itself, etc.

Only then will you have a reasonable idea of how much your gold is worth. In all cases, though, it is about the purchasing power of the gold, not its price – in any currency.

COLLATERAL DAMAGE – CHAOS 

Total collapse of the U.S. dollar would break the entire financial system and wreak economic devastation on the world. A global depression would result. There would be disruptions in communication and public services.

Financial markets would be closed indefinitely (I hope you own physical gold) and social chaos would be rampant. That’s okay. You’re a millionaire, right?

WEALTH PRESERVATION 

Owning gold during a currency collapse does not make you rich. It preserves your purchasing power. (see Gold’s Singular Role)

Since 1980, the U.S. dollar has lost 75% of its purchasing power. It costs four times as much today for comparable goods and services as it did in 1980.

A salary of $50,000 in 1980 would need to be $200,000 today just to maintain the same standard of living.

The gold price peaked at $843 in January 1980. At more than $3400 oz. recently, gold has quadrupled in price since 1980, which compensates for the loss of purchasing power in the U.S. dollar.

CONCLUSION 

Fantastic price predictions for gold are meaningless when couched in terms related to destruction of the U.S. dollar. The financial, economic, and social conditions attendant to a complete collapse of the dollar are so horrific as to nullify any potential positives associated with a “phenomenally higher gold price”.

The value of gold is in its use as money. As a long-term store of value, gold protects and preserves purchasing power.  (also see “Will Gold Hit $3460?” – Followup)

Kelsey Williams is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL THE FED

“Will Gold Hit $3460?” – Followup

In mid-March, I wrote the following:

The U.S. dollar has lost approximately 75% of its purchasing power since 1980. What this means is that it costs about four times as much today for comparable goods and services as it did in 1980. 

In order for the gold price to fully reflect the loss in USD purchasing power, it would need to be $3460 oz. today. As it is, gold is priced at $3045 oz.,  more than $400 oz. cheaper than its inflation-adjusted high in 1980.” 

The intraday high for gold in January 1980 was $843 oz. The current inflation-adjusted equivalent of $843 oz. is $3463 oz. In my original article, I rounded the number to $3460 for simplification.

In conclusion, I asked:

Will gold reach $3460? It’s possible. A 14% surge from here would do it.

The answer came quickly as gold surged in price by more than $400 ozin April. The price action is shown on the chart (source) below…

Live gold chart

The gold price did not reach $3460, but has peaked now, on three occasions, just above the $3430 mark.

Practically speaking, though, it is reasonable to say that gold has now matched its intraday price peak of $843 oz. in 1980.

Where Do We Go From Here? 

After its recent peak at $3435 in April, the gold price declined to $3171, a drop of more than 7%. After last week’s action, gold appears to be headed back to the same level.

Beyond that, the gold price could easily fall back to $3000 oz. or lower.

The upside barrier for the gold price could be more important that any downside price targets. In other words, the gold price is not likely to push through $3500 very soon, regardless of how well it is supported at current prices or lower.

Gold’s higher price over time is a reflection of the U.S. dollar’s loss of purchasing power. It is not a question of “how high can gold go?” but rather “how much purchasing power has the dollar lost?”

Once the gold price reaches a point that reflects the dollar’s loss of purchasing power up to that point, it has gone about as far as it can go, for the time being.

Afterwards, the price can decline or go nowhere for years. This can be seen on the chart (source) below…

 

The increase in the gold price from $35 oz. in 1970 to $843 oz. in January 1980 reflected the effects of inflation on the dollar’s purchasing power over the previous four decades. After finding its inflation-adjusted price, gold declined.

The gold price peak of $1895 oz. in 2011 accounted for the effects of inflation after 1980 and up until 2011. Thereafter, the price declined for nearly five years.

The recent gold price peak at $3435 oz. reflects the dollar’s loss of purchasing power since its 2011 peak at $1895.

All three periods of increasing gold prices were approximately ten years in length (1970-80; 2001-2011, 2015-25). The first two periods (1970-80; 2001-2011) were followed by multi-year declines.

Time will tell us if something similar happens this time.

CONCLUSION 

Gold’s recent price peak at $3435 oz. likely represents the culmination of its latest inflation-adjusted advance. With the dollar’s loss of purchasing power fully accounted for, history suggests that gold could enter a prolonged period of stagnation or decline, much like what happened after the 1980 and 2011 peaks.

A drop below $3000 oz. wouldn’t be surprising. For now, gold appears to have exhausted its momentum. (also see Gold, Silver, & Gold Stocks Since 2011 – Gold Kills It!)

Kelsey Williams is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL THE FED

Gold, Silver, & Gold Stocks Since 2011 – Gold Kills It!

As anticipation builds regarding possible outsized performance for silver and gold stocks, it might be worthwhile to review past performance for the two upstarts versus their mentor and perennial favorite, gold.

The chart below shows monthly closing prices for gold, silver, and gold stocks since their respective price peaks in August 2011. The prices are “normalized” to illustrate percentage changes and direction. All three items are indexed to a starting value of 100.  The respective origin prices are $1825/Gold, $41.76/ Silver, 601/Gold Stocks-HUI; closing prices as of May 30, 2025 are $3288/Gold, $32.95/Silver, 398/Gold Stocks-HUI…

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