US deficit blew out in the early 2000s, sparking a major bear market for the USD
This was a catalyst for a major increase in price of gold, from US$250 in 2001 to a high of ~$2,000 a decade later: Jesse Felder
Yesterday’s ASX News Highlights: Ramelius Resources, Breaker Resources
Equity Group CEO James Mwangi (left) and former Kenyan President Uhuru Kenyatta (2nd left) during the unveiling of EquityBCDC in DR Congo in 2021. Equity Group Holdings Ltd has increased its investment in DRC by $76.7 million. PHOTO | FILE
Three related forces are propelling gold toward a record price: economic concerns, lower bond yields, and a weaker U.S. dollar. A boost in buying this year by central banks has added fuel to the rally.
In any case, with gold so close to a historic breakout, the larger risk is being out of the market. You need to be invested before gold blows through $2100, carries silver to $30 again, and is much higher.
Central bank gold buying momentum showed no signs of stalling in February. Reported global gold reserves rose by 52t during the month – the eleventh consecutive month of net purchases – following January’s 74t. 1 This excludes updated data for Russia (more on that below ), but still maintains the upward trend (based on the 12-month moving average) since June 2022
Bitcoin is up 80% since the start of the year. History shows the cryptocurrency tends to perform well in the run-up to its so-called “halving.”
The bitcoin halving, which occurs every four years, reduces rewards for successfully mining new bitcoin by 50%. The aim is to reduce the supply of bitcoin over time.
Before the last halving, on May 11, 2020, the price of bitcoin increased by 19% from the same day a year earlier.
Halving isn’t the only factor impacting price, but it’s an important event for investors and core to the investment case for bitcoin as a store of value with limited supply.
Central bank gold buying momentum showed no signs of stalling in February. Reported global gold reserves rose by 52t during the month – the eleventh consecutive month of net purchases – following January’s 74t. 1 This excludes updated data for Russia (more on that below ), but still maintains the upward trend (based on the 12-month moving average) since June 2022
Turkey bought 23 tonnes of gold in January, making it the biggest buyer of the precious metal among central banks globally over the period.
Holdings at People’s Bank rise to more than 2,000 tons
Precious metal hit its highest in more than a year this week
Gold will hit as high as $2,400 per ounce over the next five years, as countries like Russia seek to divest of U.S. dollars, after the dollar was weaponized following Russia’s conflict in Ukraine. That’s according to Pierre Lassonde, Chairman Emeritus of Franco-Nevada and CEO of Fireside Investments, who suggested that a dual system of currency could emerge by 2028.
