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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
On October 24, 2019, I posted a bullish flag pattern, wherein gold appeared ready to break out to new highs, above the $1500 level. It did not. Prices fell from there. However, as prices fell, they did not violate the flag pattern. They merely extended the pattern.
To “save the world’s economy” in the 2008 World Financial Crisis (WFC), the Federal Reserve led the world’s central banks in printing money, hiking its holdings of T-bills and other bonds – some quite specious – from $900 billion to $4.5 trillion, a five-fold increase.
As can be seen in the graph, the world’s central banks were sellers of gold up until the 2008 World Financial Crisis (WFC). After which, they became strong buyers, with the last six quarters seeing significant buying.
2019 was a solid year for precious metals, with gold up $231 (18.5%) and silver up $2.40 (16.4%) since this time last year. Still, not much attention has been paid to the metals on the financial networks.
Although the Fed denies that it has begun QE4, it continues to inject freshly printed money into the markets, supposedly to keep the fed funds rate in the FOMC desired range of 1.5% to 1.75%. The Fed used three QE programs to avoid an economic crash in 2008. Still, the 2008 crisis is commonly referred
“Central Banks only hold gold because of tradition (if you believe their nonsense), so it probably comes as some surprise to many that central banks bought more of this ‘traditional’ asset in the first half of 2019 than they have done in any other first half on record.
The below graph is a downward sloping bullish graph for the price of gold. Often times, such formations break out to the upside. Gold is now making its fourth attempt at bettering the top downtrend line, which is where breakouts often occur.
