In June, gold-backed ETFs recorded their seventh consecutive month of positive flows, adding 104 tons – equivalent to US $5.6 billion or 2.7% of assets under management. This brought 1st half global net inflows to 734 tons, significantly above the highest level of annual inflows, both in tonnage terms (646 tons in 2009) and US-dollar
No wonder investors are apprehensive about buying gold. Consider this headline on MarketWatch this morning: Gold struggles for direction after highest highest (sic) finish in nearly 8 years Gold is up $700 from its 2015 low of $1063. Yet, this writer asserts that “gold struggles for direction.” With gold’s price action over the last five
The government’s reaction to the coronavirus has caused financial problems of monumental proportions. With the shutdown of businesses and massive layoffs, states and municipalities suffered huge losses in revenue. Two-thirds of state revenues come from income taxes or sales taxes.
Over the past fifty years, if you lived in India, South Africa, China , or Turkey, there was not a single decade you lost money owing gold five decades in a row!
Back on March 16, a report by Imperial College London forecast 2.2 million Americans would die from the coronavirus and that 81% of the U.S. population would be infected. Consequently, Trump and his team of experts, namely Dr. Anthony Fauci and Dr. Deborah Birx, began holding daily press conferences and quickly scared the daylights out
Buying the dips have made a lot of stock investors money since 2009. And today, a lot of stock investors continue to buy the dips. However, Paul Singer’s Elliott Management says that stocks could drop further, down to half of their February highs. Other analysts forecast the deepest economic decline since the Great Depression.
Goldman Sachs forecasts a federal deficit of $3.6 trillion for the current fiscal year. Last year’s deficit was a mere $984 billion, for a 3.6- fold increase. Fedgov’s fiscal year ends September 30.
Investors who had never thought of buying precious metals are pouring into the metals, depleting inventories. Compounding the problem, the US Mint and the Royal Canadian Mint are closed, and they have not indicated when they will reopen.
A recent newsletter noted that there has not been a “Black Swan” in a while, a “Black Swan” being an event that comes as a surprise and has a major effect on mankind’s affairs. The coronavirus, now named COVID-19, just rendered that observation invalid.
Total fourth quarter (Q4) demand fell 19% y-o-y to 1,045.2 tons. Two main contributors to the drop were jewelry and physical bar demand, both of which reacted to the elevated gold price. In US dollar value terms, the decline in Q4 demand was much shallower – down just 3% to US $49.7 billion. Inflows into