Inflation/Interest Rates/Gold! In the 70s the Fed raised interest rates to 20% to fight inflation that was running about 10%. The ‘70s and ‘80s saw excessive consumer and producer price increases but no housing nor equities inflation. During the 90s there was a stock market bubble...

Market swings, rising yields but stable Gold. First, Gold was marginally down in January, but rising nominal yields, a stronger dollar, and a more hawkish than expected Fed statement were the primary headwinds for gold during the month. Global gold ETF inflows of 46t were the highest since...

2021 Gold Demand Report ETF outflows were the only exception to robust gold demand recovery in 2021 otherwise annual demand recovered across virtually all sectors. 2021 gold demand (excluding OTC) increased to 4,021t, propelled by Q4 demand which jumped almost 50% to a 10-quarter high....

Gold’s Relevance as strategic asset in 2022! Gold benefits from diverse sources of demand: - as an investment, - a reserve asset, - jewellery, - a technology component - it is highly liquid, - no one’s liability, - carries no credit risk, and - is scarce, historically preserving...

Outlook of Commodities in 2022! Real rates remain low despite potential rate hikes. Gold may face similar dynamics in 2022 to those of last year, as competing forces support and curtail its performance. Near term, the gold price will likely react to real rates in response to the speed at which...

HIGHLIGHTS 2021 Physically backed gold ETFs saw global outflows of 173 tonnes (t) (-US$9.1bn, -4.0% AUM) in 2021. Collective gold holdings were down 5% to 3,570t for the year, while assets under management (AUM) in value terms dropped 9% to US$209bn as net outflows were compounded by a 4%...

Gold market analysis on November 2021: Based on the LBMA reference price, gold increased 2% in November, gaining early in the month before giving up most of its gains in the following weeks. Gold’s performance was influenced by weaker equities and commodities, lower rates, and the strength of...

Gold strengthened by increased appetite for less liquid investments! Global portfolio composition continues to shift with larger allocations to alternatives. Many of these alternative investments have previously helped portfolio performance but are less liquid than traditional investments....

The overvalued Indian equity market could represent an opportunity for gold investors! India’s equity market has outperformed major equity markets in 2021, triggered by signs of eco-nomic recovery and an accommodative monetary policy from the Reserve Bank of India (RBI). On 26 November the...

Central bank - Digital currencies and gold Technological change has always been a driving force in the evolution of money. The barter system could only give way to commodity money because refining and standardization built trust in precious metal coinage. Paper notes gained acceptability...

Indian Gold Market According to econometric study, rising income is the most powerful long-term driver of Indian gold demand. This is good news for gold demand, since the economy is expected to benefit from a demographic dividend, with per capita GDP growing at a rate of 23% between 2022 and...

Eternal Gold Value! There are people that believe that Gold has no essential value and that it is a barbaric relic which does not hold the monetary qualities of the past anymore, believing that paper currency is the money of choice and gold is only good for making jewellery. On the other hand,...

Gold and climate change, decarbonising investment portfolios Climate change is both a physical reality and a rapidly growing systemic and existential risk that all aspects of society are currently learning to address. It’s now widely understood that greenhouse gas (GHG) emissions must...

Summer 2021 Gold market analysis A new analysis from the World Gold Council, identified September as one of the best months for gold. The analysis shows that gold has delivered positive returns during the month of September “with a confidence level” of nearly 90%. “September has been one of...

Short Gold outlook September 2021 The gold price drop in August was caused by momentum changes and interest rates. The initial unforeseen shar early-hours selloff amid low liquidity conditions might have unnerved some investors, leading to lower investment demand despite a price recovery...

Gold is the best effective commodity investment, 2021! Commodities like reflation and this could be even better for gold. The current global eco-nomic landscape indicates improving economic conditions, higher inflation and rates expec-tations, as well as commodity supply shortages which are...

Quarter 2 of 2021 – Gold demand flat, H1 down by 10%. Strong consumer demand recovery and Q2 gold ETF inflows were not enough to offset heavy Q1 outflows. Gold demand (excluding OTC) for Q2 was virtually in line with Q2 2020 at 955.1t (-1%). That took H1 demand to 1,833.1t, down 11% y-o-y....

July 2021, half year Gold Outlook: Interest rates will likely remain a key driver for gold in the short and medium term. Yet, the negative impact that higher rates could have, will likely be offset by the longer-lasting effects and unintended consequences of expansionary monetary and fiscal...

GOLD AND BASEL III Impact of Net Stable Funding Ration (NSFR) on the gold market through enforcement of Basel III which implications were much debated on the bullion industry. NSFR requires 85% of required stable funding under the current rules which means higher costs for banks, holding gold...

Fears of inflation and momentum touch off Gold! The gold price rally gathered momentum driven by continued fears over inflation, a weaker dollar, lower real rates and recovered its Q1 losses, finishing May virtually flat y-t-d on the back of a significant technical breakout. Sentiment...