![]() In all likelihood, they will maintain this status in 2020, although the volume of purchases will be less than in the previous two years. Nonetheless, CBRs remain net buyers annually as demand for the first three quarters was 220.6 tons. ![]() In the third quarter of this year, they became net sellers, reducing reserves by 12.1 tons. The figure may reach 1,362 tons next year.Ĭentral banks have been buying precious metals quarterly since early 2011. This year, exchange-traded funds will accumulate 1205 tons of precious metal in their reserves, three times more than in 2019. ![]() Investors will continue to fill the gap in demand. The reason is quarantine and a decrease in the income of the population. Therefore, in the first half of the year, jewelry purchases decreased in volume by 46% compared to the same period last year. The high cost of the precious yellow metal and the economic turmoil caused by the pandemic have crippled consumer demand. People sold their savings in gold or pledged them when the precious metal rose to a record high in local currencies. However, demand in the main gold consuming countries, India and China, has not been up to par this year. acquired 20.9 million shares of one of the world's largest gold mining companies - Barrick Gold Corp. Previously, he considered precious metals a useless asset. According to the consulting company Coalition, this year, revenue from trading in precious metals from the 50 largest investment banks will double and reach a nine-year high of $2.5 billion.Įven Warren Buffett changed his mind about gold. For instance, the American bank JPMorgan earned about 1 billion dollars this year from trading in precious metals (mainly gold). Large investors bought gold for protection against possible deflation in some countries, which could be the result of slowing economic growth and rising inflation in other countries as governments continue to pump liquidity into the economy. Gold turned out to be one of the most attractive assets in 2020. The precious metal has become a leading hedge against volatility in equity markets and negative interest rates. The pandemic has convinced investors that gold should be part of their portfolios. This is twice as much as in 2009, at the height of the financial crisis. This year, the economic fallout from the pandemic and negative bond yields have driven a record $60 billion in gold ETF capital growth. ![]() During this time, the precious metal has become one of the most attractive financial assets on the planet. Western investors' interest in gold led to an increase in its rate from a minimum of $1160 in the summer of 2018 to a record high of almost $2073 in August of this year.
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