![]() ![]() ![]() ![]() So, any increased interest by the general investment community to buy via ETFs, will only add to the demand for gold bullion, and push the price higher. Now, all of that gold that is accumulated by central banks is effectively removed from the trading place, because these are not people who will sell, because the price has gone to $2,000 an ounce, they keep it for their reserves. Last month we had the news that even the central bank of Serbia bought a record amount of gold to boost their reserves. Russia in response of the sanctions, China in response of the trade Wars. One important factor I believe, has been the buying by some key central banks, for example, China, Russia. Gold is one of the historically most important safe havens, so they have been buying into bullion, again pushing the price up significantly since the middle of this year. So, all of these things are building up to a very gloomy and clouded outlook, that encourages some investors to look for safe havens. Not necessarily only the trade wars, but they are looking at the huge fiscal and economic problems in many developed economies, and also the geopolitical, and socio-economic uncertainties. Angelos, what are your thoughts on the macro picture?Īngelos: People are again becoming a little bit more nervous and they are looking at the macro picture. I think it’s coming in and has been now for two or three years, and we continue to see that.ġ21 Group: Okay. George: Well, we’ve seen the price move up this year in gold itself and gold equities. And that I think fundamentally is what’s helping gold, that it’s a hedge against uncertainty.ġ21 Group: So, the safe haven credentials are pulling money back into gold? And clearly there’s still concerns about Chinese growth, and implications of that.Īnd if you look at uncertainty indices, of which there are several, most of them are showing record levels of uncertainty over the last 20 years. One, we’re still recovering, dealing with the issues from the financial crisis, but we also have major changes in the automotive industry, which has big structural implications. And economically, we also have a lot of uncertainty. We’ve got the rise of populism politically, and we’ve seen protests in many countries, which is clearly worrying people, and how that’s going to play out. But I think if you look at the both political and economic situation globally at the moment, there are a lot of uncertainties. George: I think the root cause we would say is uncertainty, and then I qualify that by saying, well, the future’s always uncertain. And George, perhaps you’d like to start us. I wanted to start perhaps by saying, is this bullish mood going to continue? And what have been the macro drivers around, where we see the gold price at the moment? What’s been going on in the last 12 months has driven the sentiment around precious metals. 121 Group: I’ve got a fantastic line-up of precious metals investors here, and we’re going to be tackling the bullish mood around precious metals and gold. ![]()
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