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This blog discusses The Perth Mint's bullion coins and bars, providing information about our latest designs, mintages, sales volumes and sell outs. On a broader front, we share relevant research and opinions for anyone interested in gold and silver bullion investing.

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What are SMSF trustees saying about gold?

Recently the Australian Shareholders Association (ASA) invited The Perth Mint to host a webinar for its members entitled Gold - Where to next? The webinar looked at recent performance trends in gold, the outlook for investment demand, the potential short-term headwinds and tailwinds driving the gold price, and the key reasons investors, including SMSF trustees, are including a gold allocation in their portfolios.

During the course of the webinar, we asked trustees two questions relating to the outlook for investment markets. The first of those was whether or not they were concerned about the potential for further equity market volatility, with more than 90% of respondents stating that they were concerned.

This is relevant for future gold demand, as market data from 1971 to 2019 reveals that gold has typically been the highest performing asset in the months, quarters and years that equities suffered declines in value. It also happens to be positively correlated to rising equity markets. The chart below highlights this, showing the average returns for gold and equities in the months where equities rise, and the months where equities fall. 


Source: The Perth Mint, Reuters

The second question related to interest rates, and how concerned respondents were about the current cash rate of 0.25%, and the outlook for rates in the years ahead, with Australian 10-year government bond yields below 1%. More than 60% of respondents stated that this was a concern for them. 

The anxiety regarding low interest rates will likely help drive gold demand in the future. Market history tells us that gold has been an outperformer in periods of low real interest rates, delivering annual average gains of more than 20% in nominal terms between 1971 and 2019 in the years when real interest rates were 2% or less. 

At the end of the webinar there were plenty of questions from attendees looking for further information not only for the investment case for gold, but also the practicalities of incorporating the precious metal into their portfolio.

We’ve included some of those questions, and our answers, below.

Is supply of gold from miners growing faster than demand?

Over the 10 years to the end of 2019, gold demand has averaged just over 4,400 tonnes, whilst gold mine production averaged just over 3,200 tonnes, so gold mine supply is not outgrowing demand. 

More importantly, it is critical for investors to appreciate that whilst gold production on an annual basis can and does change (it rose by 24% between 2010 and 2019) this newly mined gold is only a small fraction of the existing stockpile of gold. 

That stockpile has been built over thousands of years as human beings have found gold, mined gold, refined gold, and then either worn it as a display of wealth as jewellery, or held it as investment in bar or coin form.  

The table below illustrates how small an impact annual mine production has on the total gold stock, by highlighting the total above ground gold stock on a yearly basis over the last decade (the increase in this number effectively represents annual gold production) and the percentage increase in the total gold stock on a yearly basis over this timeframe. 

Source: The Perth Mint, World Gold Council

As you can see, the total supply of gold increases at an incredibly stable rate over time. 

Given that the price of any asset is determined by its supply and its demand, this understanding of gold’s stable total supply should make it clear to investors that the gold price is almost exclusively demand driven. 

How much gold should an investor have in their portfolio?

The percentage of a portfolio that an investor chooses to allocate to gold (or any asset class for that matter) is a personal one, and can be driven by multiple factors including but not limited to their age, their employment status, their income requirements, their existing asset allocation and their tolerance for short-term volatility. 

Some investors will have zero allocation, whilst others, including diversified managed funds like The Cor Capital Fund, will have up to 25% of their portfolio in gold. Describing gold as “liquid bricks and mortar” this fund has noted in various publications that they "love the negative correlation of gold to stocks when stocks fall” and have confidence in their gold allocation due to “the price history we can study over hundreds of years relative to other commodities and currencies.” 

Whilst The Perth Mint can’t provide advice on what allocation gold investors should have in their portfolio, many of our SMSF trustee customers often allocate 5-10% of their portfolio into precious metals. 

What is the best method for buying gold and how much does it cost to store gold?

Much like equity investors have multiple vehicles through which they can gain their exposure (direct shares, managed funds, ETFs or LICs for example), one can invest in gold in multiple formats, with no one approach that is best for all investors.

Physical bars and coins are the traditional method, and remain popular, especially for those who like to feel tangible wealth in their hands, though these products typically come with higher trading fees due to the fabrication costs of manufacturing them. 

One cost-effective way to obtain exposure to gold is to use a gold Exchange Traded Product, like Perth Mint GOLD (ASX: PMGOLD), which has a management fee of just 0.15%. 

Another option that is popular with SMSF trustees is to use a Perth Mint depository account, which allows you to trade 24/7, with The Perth Mint providing custody of the metal you own. Trading costs are typically 0.95% for trades between AUD 10,000 and AUD 100,000, with the rate declining as the size of the trade grows. 

Storage costs for depository accounts are either 1% per annum for allocated bars (that is bars you have direct legal title too), or we also offer unallocated gold (you don’t have title to a specific bar in this case, rather a claim on gold being used in the value chain of the business of The Perth Mint) which has no storage costs at all. 

Why hasn’t silver performed as well as gold recently?

Whilst gold is seen as a safe-haven asset and monetary commodity, silver is seen as a quasi-industrial commodity, with almost 60% of its demand driven by industrial use including photography and silverware. 

As such, silver often tends to sell off during periods of heightened concern about global growth, with the economic fallout from the steps taken to contain Covid-19 (which saw the Goldman Sachs Commodity Index fall 40% in the first three months of the year), also hitting silver, which fell by 20% over the same time period.

Gold on the other hand rose during Q1 2020, up 4% in USD terms and almost 20% in AUD terms, as it benefitted from flight to safety investor flows as equity markets tumbled over this time period. 

Are Australian investors better to invest in gold hedged in USD rather than unhedged in AUD?


Investing in gold unhedged in AUD gives investors exposure to two factors:

1. the movement in the USD gold price; and
2. the movement in the AUDUSD FX rate.

Whilst this brings with it another risk factor for Australian investors with precious metal exposure, it also adds another potential source of return, as any fall in the value of the AUD vs. the USD will boost the AUD price of gold. 

Many of the Australian investors we deal with at The Perth Mint are happy to have their exposure to gold unhedged in AUD, as they see it as currency diversification for their overall wealth, given they typically earn their income in AUD as well as have exposure to Australian real estate, shares and cash in their portfolio. 

Ultimately though, it is the individual investor who needs to choose whether they want that currency exposure or not. 

Are gold miners a better investment than gold?

This is a great question and one we’ve been asked many times over the years. Just like buying shares in Australia’s big banks is not the same as buying an investment property (even though the majority of bank lending is directed toward residential property these days), gold and gold miners are different investments. 

Whilst they both can play a valuable role in an investment portfolio, it is important to realise they have different characteristics and qualities.

Gold is an exceptionally liquid asset (turnover in the gold market is typically more than USD $150 billion per day), has zero credit risk, and has a long track record of protecting wealth in periods where equity markets sell off.  Gold is also a very simple investment, however, it doesn’t provide an income stream. 

Gold miners on the other hand can pay dividends, and can see their profits grow substantially in periods of rising gold prices, depending on a handful of factors including their ability to:

1. maintain or grow production.
2. maintain or grow the margins they make on their production.

As such, there are many other risk factors to consider when investing in gold miners, with movements in gold mining company share prices typically being more volatile than movements in the gold price itself. 

In terms of how the market views these distinct assets, it tends to treat gold itself as a defensive asset, due to its historical outperformance in periods of low real interest rates, its ability to hedge equity market risk, its high liquidity and lack of credit risk. 

Gold equities are typically considered to be growth assets, and fit within the equity component of a portfolio, due to the higher risk/higher return characteristics they typically display.

Again, whilst it’s not for The Perth Mint to advise, diversified investors may wish to choose both in their portfolio.  


Disclaimer:

Past performance does not guarantee future results.

The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint. The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances. All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but we do not guarantee their accuracy or completeness. The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.



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Why gold can be a low cost investment

Most analysis of gold as an investment looks at its ability to deliver strong long-term returns, its outperformance in low interest rate environments, its ability to protect against inflation, and its hedging qualities whenever stock markets fall.

Another important feature of gold that is worth investors considering is its cost. Note that in this context, when we refer to cost, we aren’t talking about the cost per troy ounce (which has risen by over 10% per annum to over AUD 2,700 per troy ounce in the 15 years to end March 2020), but instead the cost of storing the metal over time.

When looked at in this context, investors will see that gold is a very cost-effective asset class to include in their portfolios, with storage fees that are lower than the management costs of most other asset classes.

As an example, unallocated gold purchased through The Perth Mint has zero storage cost, meaning investors pay a fee to buy and a fee to sell their gold, but no other fee for the duration of their investment, even if they plan to hold it for decades.

By way of comparison, according to an article in Selecting Super, Rainmaker (a research house specialising in superannuation and financial services) estimates that the average Australian pays 1.23% per annum in management and administration fees for their superannuation investments.

Over a decade, the difference in these fees are profound, as you can see in the table below, which is based on a AUD 100,000 investment into either gold or superannuation. Note that the table assumes a 1% cost to buy and a 1% cost to sell gold but zero storage costs for the gold over the 10 years. It also assumes a zero buying and selling fee for superannuation (in practice there can be fees for this), but an annual charge of 1.23% on the superannuation assets.

The assumed gross rate of return for both investments is 8% per annum, with the total differential coming to almost AUD 20,000 over a 10-year period.

Source: The Perth Mint

Another way of looking at the cost-effectiveness of gold is by looking at the exchange traded fund (ETF) market. The following chart highlights the average management expense ratios (MER) for a range of ETFs offering exposure to alternative assets like foreign currency, infrastructure, commodities and global equities. It also shows the average MER of hedge funds based on a detailed survey from Ernst and Young, as well as the MER for PMGOLD, The Perth Mint’s ASX listed gold product.

The chart highlights the fact that at 0.15%, the MER of PMGOLD is very low, less than one third of ETFs as a whole, putting gold at the very low end of the spectrum from a cost perspective.

This is beneficial to the end investor who will get to keep more of the return generated by gold for themselves, rather than paying it away in product fees.

Gold’s low cost, as well as other non-performance related attributes like its high liquidity and accessibility, will continue to drive demand going forward, especially as market pricing suggests we will remain in a low real interest rate environment for years to come.

Disclaimer:

Past performance does not guarantee future results.

The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint. The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances. All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but we do not guarantee their accuracy or completeness. The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.



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What managed money gold positions might be telling us

Investors who are looking to own precious metals like gold as long-term investments typically access the market in one of three main ways. They either buy physical bars and coins, invest through a depository account, or purchase an exchange traded fund via their stockbroker.

A fourth way to get gold exposure is through futures contracts. Futures contracts are used by many participants in the gold industry and in broader financial markets, with investors either buying gold futures (termed ‘going long’) or selling gold futures (termed ‘going short’).

Futures contracts like those traded on the Chicago Mercantile Exchange (CME), which operates the largest futures markets in the world, are worth 100 ounces of gold. At the end March 2020, the price of gold was USD 1,577.68 per ounce, meaning that each futures contract had a nominal value of USD157,768.

Participants in the gold futures market are typically not interested in taking physical possession of the metal, but instead are using gold to hedge price risk, or to speculate that the metal will increase or decrease in price, in the hope they make a profit from the expected move.

Every week, the Commodity Futures Trading Commission (CFTC) in the United States publishes a report which highlights activity in the futures market, as well as the total number of ‘long’ positions and ‘short’ positions in each commodity.

CFTC reports also break-down long and short positions between different investor types, from commercial entities who use futures to manage risk within their business (for example a mining company or jewellery fabricator), through to speculators, who are simply hoping to make money based on which direction they think the gold price will head.

It is this latter category of speculators, termed ‘managed money’, that is worth paying particular attention too. This is because whilst their activity has an impact on gold prices (as you’ll see below), they often get overextended at or near market inflection points.

This means that if you see a very large build-up in managed money long positions, it could be a warning sign that the gold market needs a breather, with potential for a short-term price correction. At the other end of the spectrum, when you see lots of investors speculating the price will fall, it’s an indicator (though not a guarantee) that the market may be close to bottoming.

What has been happening with managed money gold positions?

The chart below plots managed money gross long and gross short positions from late 2017 through to the end of March 2020. The blue bars represents gross long positions (i.e. the number of investors betting the price will rise), whilst the red bars represents gross short positions (i.e. the number of investors betting the price will fall).

The chart makes it clear that back in mid to late 2018, there was a sizable number of investors betting the price would fall, with the gross short positions numbering over 200,000 contracts. At the same time, there were less than 100,000 gross long positions, emphasising that more investors were betting the price would fall, rather than rise.

It is worth pointing out that back towards the end of Q3 2018, at a time when a record number of speculators thought the gold price would fall, it was trading just below USD 1,200 per ounce. It is almost 40% higher today. 

In the 18 or so months that have passed, the situation with managed money speculators has changed considerably, with gross short positions dropping from over 200,000 to below 20,000 contracts, whilst gross long positions rose from below 100,000 to above 250,000 contracts at one point.

In terms of the impact this has had on the market, consider that from September 2018 through to the end of February 2020, the gold price averaged USD 1,385 per ounce.

If all those speculators that were short gold unwound their positions at this price, it would have equated to just over USD 22 billion of gold buying. If all the speculators that went long gold over this period did it at that average price, it would represent buying of over USD 25 billion.

That is a lot of ‘gold buying’ with this activity playing a key role in the gold price rally over the period, which can see be seen on the black line in the chart above.

Since mid-February 2020, managed money speculators have cut their gross long positions by more than 40%. This means that a substantial amount of froth (or investor overexuberance) has come out of the market in the last two months.

That is a positive development for long-term gold bulls, though of course it does not guarantee prices will rise in the period ahead.

Disclaimer:

Past performance does not guarantee future results.

The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint. The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances. All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but we do not guarantee their accuracy or completeness. The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.



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What is gold to silver ratio trading?

The gold to silver price ratio has continued to rise over the past year from an already high 86 to 1, to 112 to 1. In this updated version of an article first posted 12 months ago, we remind readers what the gold to silver ratio is and why it’s an important consideration for some precious metal investors.

The gold to silver price ratio is a measure of how many ounces of silver are required to buy an ounce of gold.

For a long period of human history both were monetary metals and the ratio was generally fixed. Today, however, the ratio floats – reflecting market forces that determine the gold and silver price.

The average gold to silver ratio during the 20th century (in USD) was 47 to 1. Over the past 20 years the average has been nearer to 60 to 1.

For some hard assets enthusiasts, the gold to silver ratio is the basis of their precious metal trading strategy. In particular, they are interested in times when the ratio fluctuates widely from the prevailing norm.

The theory is that a high ratio signals it could be time to favour silver – which appears relatively cheap by historical standards.

Conversely, a low ratio may mean it could be a good time to purchase gold.

This time last year we noted that at 86 to 1, the gold to silver ratio was well above its 10-year average of around 66 to 1. It meant 86oz of silver were needed to buy 1oz of gold - an abnormally high level that could have been interpreted as a powerful trading signal.

In the past year, the gold to silver price ratio has spiked even higher, and currently sits around 112 to 1.

It should not be forgotten that silver, by comparison to gold, can be highly volatile. As Investopedia states: the price of silver swings between its perceived role as a store of value and its role as an industrial metal. 

During the emergence of the Covid-19 crisis, silver, alongside many other industrial commodities suffered significant selling pressure that saw the price fall to its lowest level in more than a decade.

Behind this price movement lies the fear of a global economic recession and a reduction in commercial and consumer demand for silver. Considering that every computer, mobile phone, vehicle and a countless number of other electrical appliances – including many solar energy panels – contains silver, it’s easy to understand how this fear may be realised.

Gold on the other hand increased in value, rallying as a safe haven asset amid tumbling equity markets. With silver performing poorly relative to gold during this period, the gold to silver ratio briefly touched an all-time high of 127 in mid-March.

Right now, the price of silver is languishing at under USD 15 per ounce, way below its record of USD 49.50, reached in April 2011. In its recently released World Silver Report, however, The Silver Institute said it remained constructive towards the silver price during the rest of 2020.

“We expect physical investment to enjoy strong growth. Importantly, we also believe that professional investor interest in silver will also improve considerably in the months to come, as confidence that gold is once again in a sustainable bull market grows and silver’s historical undervaluation makes it look yet more attractive.”

In a follow-up interview with Kitco, Phillip Newman, director of Metals Focus, the precious metal consultancy behind The Silver Institute report, said that investor demand for silver could push prices to USD 19 an ounce this year.

One of the key indicators he is watching is speculative interest in the metal. According to data from the Commodity Futures Trading Commission, net-bullish positioning in silver is at its lowest level in a year. This suggests “there is significant room for speculative investment to come back into the market,” he said.

If this scenario were to come true, Metals Focus’ price target represents a more than 26% gain in silver from current prices.

Given this analysis and the extremely high gold to silver ratio, there’s no doubt many investors interested in ratio trading will be eyeing the prospect of buying into silver. While nothing is assured, it is useful to be aware of the ratio when researching the many factors likely to affect precious metal prices.



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Monetary stimulus fuels gold rally

Executive summary

 •  The price of both gold and silver rose by over 8% in April, with gold ending the month above USD 1,700 per troy ounce.

 • In AUD terms, gold and silver rose by just over 1.50%, with the AUD rallying more than 6% in April, ending the month above USD 0.65.

 • Demand for Perth Mint products was strong, with continued inflows into ETFs, and multi-year highs seen for minted coin and bar sales.

 • Share markets rallied more than 10% in the United States and 9% in Australia, with gold again demonstrating its positive correlation to rising equity markets.

Full monthly review – April 2020

Precious metals rallied in April, with the price of both gold and silver increasing by just over 8% in USD terms. Gold finished the month back above USD 1,700 per troy ounce. In AUD terms, gold and silver rose by just over 1.50%, due to the more than 6% rally in the value of our local currency, which ended the month trading back above USD 0.65.

Continued uncertainty regarding the spread of Covid-19 and the negative impact it’s having on the economy (oil prices at one point during the month traded below zero) helped fuel demand for precious metals, with central bank balance sheet expansion another tailwind supporting higher prices.

The performance of precious metals in April occurred alongside a strong rally in equity markets, with the S&P 500 rising by 12.5% during April (it was up 30% from the lows seen in late March), one of its strongest calendar month returns on record.

The ASX 200 in Australia also delivered strong returns, rising by almost 9% in April, with the local bourse up more than 20% from the late March lows through to end April.

That gold has performed so well alongside a rise in equities will have confounded some investors and market commentators, as many see gold as a pure ‘risk-off’ asset, which they only expect to deliver positive returns during periods where equities sell off.

This belief is not supported by historical observation, with the following chart highlighting the average return of gold (in both USD and AUD terms) and the average price return of US and Australian equity markets during the months where equity markets rise, and the months when they fall.

Note that the chart is drawn from almost 50 years of market data, from 1971 to 2019 inclusive, with gold historically delivering positive returns in months where equities have risen.

This is one of the underappreciated qualities of gold in the context of a diversified portfolio, for gold is negatively correlated to equities when they fall, but positively correlated when equities rise. As such, the performance of gold in April, where it rallied alongside an increase in risk assets, very much aligns with historical observation.

Going forward, there is a good chance these trends will strengthen.

After all, the primary driver of the equity market rally since late March was not an improvement in economic fundamentals, but rather the extraordinary expansion of central bank balance sheets. This included the US Federal Reserve which increased its balance sheet by US 840 billion in April alone, with USD 2.4 trillion added to its balance sheet since the beginning of March.

This can be expected to support equities and other risk assets for as long as it continues, but one suspects it will also support gold, as investor concerns about the future purchasing power of fiat currencies continue to build, with gold a historical outperformer in periods of low to negative real interest rates.

Should the recent equity market rally run out of steam, then we’d expect gold to continue finding favour as a defensive asset (as it did during Q1 2020) with vast swathes of the fixed income market already set to generate negative real returns for another decade at a minimum.

The potential for higher inflation would likely increase investor appetite for gold, as it would further reduce real yields should it come to pass. Whilst many would argue that higher inflation is the least of our concerns in a world of cratering aggregate demand, it would be unwise to totally dismiss it as a threat.

Commodity shortages in certain parts of the economy, fragments supply chains, the emerging trend of deglobalization, as well as large scale fiscal and monetary stimulus are fertile breeding ground for a sustained uptick in consumer prices.

Indeed, Bloomberg recently ran an article titled: “Fears mount about inflation returning with a vengeance”, with many well-respected economists and commentators warning about this very threat.

Silver and gold stocks begin to outperform

The gold/silver ratio (GSR) fell during April, ending the month at just over 111. This continued silver’s outperformance in recent weeks, with the GSR ratio peaking at just over 121 on 19th March 2020. Subsequently, silver rallied by just over 25% in USD terms, strongly outperforming gold, with the yellow metal rising by 16% over the same time period.

These movements will be encouraging for many precious metal bulls, as silver’s outperformance, plus the strong rally in gold stocks (GDX, the ETF that tracks large-cap gold miners rallied by 70% from 13th March through to the end of April) suggesting that more capital is gravitating towards precious metals as an asset class.

Robust investment demand

Demand for gold among investors remained strong, with sales figures for The Perth Mint at or near their highest levels across a range of products. In April 2020, investors bought just over 120,000 troy ounces of gold in minted product form, which is three times the monthly average dating back to 2012. Demand for silver was also strong, with over 2.1 million troy ounces sold in minted product form, the highest monthly figure in almost five years.

In the gold ETF space, April saw continued inflows, with preliminary data suggesting almost 150 tonnes of gold had flowed into these products in the first three weeks of April alone. This continues an incredibly strong run for global gold ETF demand in 2020, with inflows in Q1 of 298 tonnes, the third highest calendar quarter on record. The Perth Mint saw this demand first hand, with holdings in our ASX listed product (ASX: PMGOLD) continuing to increase, with total holdings increasing by over 40% since the start of 2020.

Central banks also remained active in the gold space, with data from the World Gold Council suggesting they added 145 tonnes to their gold holdings in Q1 2020. Central bank acquisitions are expected to decline further as we progress through 2020, with Russia (which has added more than 1,900 tonnes to its gold reserves since 2005) stating that it will halt purchases of gold bullion for now.

Are investors too optimistic on gold?

The rally that has taken place in gold over the last 18 months, and the deteriorating economic conditions that has helped fuel it, has put the yellow metal back on many investors radar, with an increasing number of people seeing the yellow metal as a core asset to hold in their portfolios.

Despite this, we are a long way from seeing overexuberance amongst the broader investing public. This was demonstrated by a recent Gallup poll that asked American investors which asset class they thought was the best long-term investment, with respondents asked to pick between real estate, bonds, gold, stocks/mutual funds, or saving accounts/certificates of deposit.

The poll suggested that only 16% of Americans thought gold was the best long-term investment. This number has barely changed since 2016, even though gold has rallied over 50% since then.

It is also less than half the number of investors who chose gold as the best long-term investment back in 2011, when the price hit an all-time high above USD 1,900 per troy ounce.

The trends in which asset classes American investors trust most can be seen in the chart below, with the popularity of gold and real estate in 2020 practically mirror images of where they were nine years ago.

Many investors will see this as an encouraging sign. The last time gold was exceptionally popular, it almost perfectly coincided with a bull market top, with prices then falling by 45% in USD terms over the next four years from late 2011 to late 2015. 

Market commentators are also getting more bullish, with Bank of America, for example, releasing a report in April 2020 titled: “The Fed can’t print gold”, which forecast that the gold price could head as high as USD 3,000 per troy ounce within 18 months.

The Bank of America report noted that economic output was set to contract sharply, and that this contraction, combined with a large increase in fiscal deficits and the expansion of central bank balance sheets would see investors “aim for gold”.

Whilst that forecast is at the very bullish end of the forecasting spectrum, there seems little doubt that uncertainty is here to stay.

For as long as investors remain fearful about Covid-19 itself, the outlook for economic growth, or the potential for inflation to rise, we’d expect gold demand, and therefore gold prices, to remain supported.

Disclaimer:

Past performance does not guarantee future results.

The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint. The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances. All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but we do not guarantee their accuracy or completeness. The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.



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PMGOLD holdings hit all-time high

Topics [ Perth Mint Gold ]

Monthly holdings report – April 2020

Perth Mint Gold (ASX: PMGOLD) holdings continued to rise in April 2020, hitting a new all-time high of 188,161 ounces (5.85 tonnes), with inflows of more than 13,500 ounces for the month.

Monthly flows into PMGOLD can be seen in the chart below, with April 2020 seeing the one of largest inflows on record.

Inflows in April continue a strong run for PMGOLD that dates back to September 2018, with total holdings increasing by more than 100,000 ounces over this time period.

The value of PMGOLD holdings also topped AUD 490 million for the first time by the end of April 2020, driven not only by strong investor inflows, but also the rise in the gold price, which ended the month trading above AUD 2,600 per ounce.

To learn more about investing in PMGOLD, simply download our PMGOLD Factsheet.



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