Given their pivotal role in the green economy future of mining, there has been an ever growing demand for battery metals. With the DRC endowed with these minerals, the country needs a platform for dialogue on how to leverage the demand.
Gold prices could break an all-time high in 2023 and the outlook for “every single metal on the periodic table” is incredibly bullish, which could be very good for the junior exploration sector.
Data compiled by the World Gold Council showed annual central bank demand more than doubled to 1,136t in 2022, up from 450t the year before and to a new 55-year record high.
2022 was a rough year for investors: Between inflation, falling stock prices, and the crypto crash, it was hard to find a safe haven.
Soloway, who teaches trading courses at VerifiedInvestingEducation.com and has had a successful career as a trader, said that getting a proper education in investing is important for beginners.
The gold market has a 5,000-year history as a store of value; however, in the last 30 years, the precious metal has established itself as an essential global asset in a world filled with uncertainty, according to the latest report from the World Gold Council.
Tuesday, the WGC celebrated the 30 anniversary of its quarterly and annual Gold Demand Trends report, which looks at all pillars of physical demand in the global marketplace, including jewelry purchases to investor demand and central bank gold holdings.
In an interview with Kitco News, Juan Carlos Artigas, global head of research at the World Gold Council, said that over the last 30 years has evolved to become a more robust and profound market, providing investors around the world with stability and value in their portfolios.
“There is more to gold than one specific market,” he said. “In the last 30 years, the market has changed a lot and the reality is that gold is as important as ever.”
Looking at gold as an asset class, the WGC noted that in the last 30 years, the price had risen from around $330 an ounce, when the first GDT was published, to ending 2022 at $1,814 an ounce.
“With a 5.8% annualized return over the period, gold has outperformed cash, bonds and commodities,” the analysts said. “Gold has also maintained a very low average correlation to stocks, even rising in times of turmoil and performing positively in five out of the past seven recessions, helping investors to reduce their portfolio losses.”
Artigas said that what makes gold a stable and valuable asset is that there is not just one factor that has contributed to gold’s growing role in financial markets.
“If it were just one factor driving gold, that wouldn’t have been sustainable over the last 30 years,” he said.
The report noted that in the 1990s, gold was predominantly driven by consumers, with jewelry and technology consumption accounting for the vast majority of gold demand. However, in the last decade fabrication demand now makes up roughly 44% of the total gold market.
Analysts at the WGC noted that jewelry and technology demand are now counterbalances to investment and central bank demand.
“Combined, gold’s role as a consumer good and investment asset underpin its unique dual nature and effective role as a diversifier,” the analysts said.
Gold’s role in financial markets abruptly shifted in 2003 when gold-backed exchange-traded funds were introduced. Investors could now buy gold the same way they could buy stocks.
“This was a significant barrier removed for investors and made it easier for them to buy gold,” said Artigas.
At the same time, two major gold-consuming nations, India and China, saw significant growth in their middle classes, meaning more consumers could buy more gold. The report said that in the 1990s, Asian demand represented about 45% of the global market; today, the region represents about 60%.
Specifically, India and China accounted for less than 20% of total annual demand combined 30 years ago. Today these two countries make up nearly 50%, the report said.
“This is a clear illustration of wealth expansion as one of the most important drivers of gold demand over the long run,” the analysts said in the report.
China has seen the biggest transformation in its domestic gold market as consumers were banned from buying gold up until 2002. China is now the world’s biggest gold-consuming nation and the world’s top gold producer.
“China’s role in today’s global gold market is almost unrecognizable from that of thirty years ago,” the analysts said.
A third transformation in the gold market in the last 30 years has been its renewed role as an important monetary metal. The WGC noted that in the first two decades, central banks were net sellers of the precious metal. The Bank of England is famous for having sold its gold between 1999 and 2002 as prices were trading at historic lows.
The Bank of Canada was another major central bank that sold its gold in the early 2000s.
However, in the last 13 years, central banks have been net buyers. 2022 was a year of insatiable demand, with central banks buying 1,136 tonnes of gold, the highest level of buying since 1967. This was the second highest level of annual demand on record going back to the 1950s, the report said.
Artigas said that central bank demand now represents about 10% of the global market. “And we are not expecting that to go anytime soon,” he said.
“Gold’s performance in times of crisis, its characteristic as a store of value over the long term and its high liquidity were all key reasons for central banks to hold gold,” the analysts said.
As to what the future holds for the gold market in the next 30 years, Artigas said that there is plenty of room for growth; he noted that the massive wealth gap in the world means that any rise in the middle class should create new demand for the precious metal.
He added that emerging markets remain untapped potential for the precious metal.
Artigas also said that evolving technology and the expanding digital marketplace represent new venues for gold.
“There’s plenty of ways in which the gold market can grow,” he said. “There are real and growing applications for gold in the technology sector. There are a lot of things to be excited about regarding gold’s future.”
In Central Asia, Uzbekistan added 34 tonnes to its gold reserves in 2022, followed by the Kyrgyz Republic with six tonnes and Tajikistan with four tonnes.
Companies like Tesla are under increasing scrutiny to take responsibility for environmental and human rights violations along their supply chains.
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A viral video from the Democratic Republic of Congo (DRC) has captured the attention of many as it shows locals flocking to a mountain in search of gold.
The video, shared on Twitter by user Armadale Gabriel, documents the surprise and excitement of villagers as they discover a mountain filled with gold ore.
Using shovels, tools, and even their bare hands, the locals dig into the soil and extract the gold, taking it back to their homes to wash and extract the precious metal.
The news of the gold rush spread quickly, drawing thousands to the village in Congo’s South Kivu province.
Al Gobery, locals can be seen washing the dirt off the gold and extracting it in containers.
However, the country’s authorities were forced to impose a ban on mining activities in the village in order to stop the crazy gold rush.
This video initially gained widespread attention on social media in 2021, but it recently regained viral status after being reposted by Africa Archives. MandyNews.com decided to bring the report back to the forefront as a result.
Mandy News obtained information that the discovery of gold-rich ore in Luhihi occurred in late February 2021, which led to a rush of people heading to the site to dig for gold.
The discovery of gold in this remote village in Congo has brought both excitement and challenges. While it has brought a sense of hope and possibility to the locals, it has also brought attention to the need for proper regulation and management of the mining activities.
GOLD RUSH IN CONGO
MandyNews.com recently made a publication on a gold mountain found in the Democratic Republic of Congo (DRC) that had gone viral. The incident occurred in a mountain located 35 kilometers north of Bukavu, the capital of South Kivu province in Congo. The video of the gold rush had captured the attention of many, and many viewers were curious to know what happened after the gold rush.
The video of the gold rush had captured the attention of many, and many viewers were curious to know what happened after the gold rush.
The discovery of the gold-rich mountain brought throngs of diggers to the site, eager to extract the precious metal. However, the government quickly stepped in to restore order and collect back the gold that the villagers had mined.
The DRC is one of the most resource-rich countries in the world, but the exploitation of its resources by multinationals has made it one of the poorest countries in the world.
The mountain where the gold rush occurred was in a mining area that was registered with official workers.
The Minister of Mines of the South Kivu state, Vernon Buruma, confirmed the discovery of the gold ores and stated that it had caused the gold rush. As a result of the gold rush, the government issued a ban to stop all mining activities in the village of South Kivu.
A group of miners, merchants, and members of the Armed Forces (FARDC) have also been asked to leave the mine site until further notice.
The Minister has since issued a decree that states that order must be re-established in mining activities in Luhihi, not only to protect lives but also to ensure that the search for gold is produced in accordance with Congolese law.
He also announced that the government will establish a legal framework for the exploitation of gold mines in the region to ensure that the gold is extracted in a sustainable and responsible manner.
The decision to take away the gold mountain from the locals has sparked debate. While some argue that the government made the right decision to protect lives and ensure that mining activities are conducted in accordance with the law, others argue that the locals, who are in dire need of this gold, should have been allowed to keep it.
The DRC has a long history of exploitation of its natural resources by foreign companies, and this has led to a lack of development and poverty in the country. The government’s decision to take control of the gold mining activities in Luhihi is an important step in ensuring that the country’s resources are exploited in a sustainable and responsible manner.
The gold rush in Luhihi village of South Kivu province in Congo has brought both excitement and challenges. The discovery of gold in this remote village has brought hope and possibility to the locals, but it has also brought attention to the need for proper regulation and management of mining activities.
The government’s decision to take control of the gold mining activities and to establish a legal framework for the exploitation of gold mines in the region is an important step in ensuring that the country’s resources are exploited in a sustainable and responsible manner.
Source: Mady News
Most central banks’ largest percentage of reserves are US dollars, which usually come in the form of US Treasury bonds. It would make sense for some of the central banks, especially China, to decide to depend less on the dollar.
