Reshaping the global gold market

[View this email in your browser]( [Youtube]( [Kitco Metals]( Editor's Picks [@neils_C]( As much as Western investors want to ignore the [gold]( market, there is no denying that we are seeing a generational shift in the marketplace. Investment demand is being replaced by central bank purchases as one of the most significant factors driving prices. At the same time, market influence is rushing from the West to the East as Asian buyers, specifically Chinese retail investors, have an insatiable appetite for gold. [This shifting dynamic in gold was revealed in Incrementum AG’s annual comprehensive "In Gold We Trust" report.]( one of its findings, the report highlights the end of the Great Moderation—a period characterized by low inflation—and the onset of persistent inflation volatility. This new economic environment strengthens the case for gold as a hedge against inflation and economic instability. The theme of this year’s IGWT report was embracing a new playbook, which is fairly apt in this environment. Central banks and Emerging Market economies are embracing new strategies that include gold as an important monetary asset; however, Western investors continue to read from the old playbook as they focus on monetary policy and opportunity costs of holding gold. As a nonyielding asset, holding gold while interest rates remain in restrictive territory can be expensive. While this remains a factor for gold, it is not the dominating theme anymore. Although central banks have been buying gold at an unprecedented pace, they are not alone. Analysts have noted that gold is becoming a globally important monetary metal. In an interview with Kitco News, [Steve Land, Lead Portfolio Manager of Franklin Templeton’s Franklin Gold and Precious Metals Fund]( said that the rise in over-the-counter activity in the gold market could be a sign that nations are using the precious metal to settle international trade. Land is not alone. Steve Forbes, Chairman, and Editor-in-Chief of Forbes Media, suggested in a recent commentary that the world is inching toward a new gold standard. Forbes notes that despite widespread skepticism, the historical gold standard provided economic stability and growth. Gold’s growing allure makes sense when you look at the size of government debt worldwide. Forbes noted that total global debt is more than $300 trillion, three times the global GDP. Land said that sovereign gold demand will continue to rise as nations become more insular. While Western investors are still not interested in gold, this segment of the market shows some recognition that marketplace dynamics have changed. Retail investors may not be buying gold, but they at least aren’t selling it on masse anymore. We could still see investors following the old playbook, and the Fed’s hesitancy to signal rate cuts this year will create some short-term volatility and drag prices lower; however, in the current environment, many analysts have said that gold remains an attractive asset to buy on dips. That’s it for this week. To all our American readers, we wish you all the best this Memorial Day long weekend. Neils C. Editor's picks [Gold to outperform silver as long as S&P trends higher – Mike McGlone]( to outperform silver as long as S&P trends higher – Mike McGlone]( [Financial World War Coming: Global Elite's Plan - 'You'll Own Nothing & They'll Own You,' Carol Roth]( World War Coming: Global Elite's Plan - 'You'll Own Nothing & They'll Own You,' Carol Roth]( [Bitcoin to Hit This Level Before Next Breakout, Charts Show This for BTC, Gold & Silver - Grummes]( to Hit This Level Before Next Breakout, Charts Show This for BTC, Gold & Silver - Grummes]( [Silver Price Surge Above $30 Signals a Major Shift - Bill Baruch]( Price Surge Above $30 Signals a Major Shift - Bill Baruch]( [Kitco News]( [Gold has new momentum as its utility grows in global trade - Franklin Templeton’s Steve Land]( [Signs that a global gold standard is gaining traction – Steve Forbes]( [SEC approves spot Ether ETFs for accelerated launch]( [The new playbook says investors should hold 25% of their portfolio in gold - Incrementum AG]( [Silver eyes $50? TD Securities predicts major breakout after $31 support holds]( [Chinese public and private sector purchases still driving gold prices – Nieuwenhuijs]( [Gold prices rise on tariff threats and improved inflation outlook, silver sees increasing solar demand from India – Heraeus]( [Bitcoin celebrates Pizza Day at $70k: from $41 pizza to $700 million fortune]( [A pause in Western investor selling has been enough to drive gold to new record highs - Commerzbank]( [Financial market feud: Coinbase launches oil & gold futures, CME targets bitcoin spot market]( [Gold still on track to hit $3,000 as U.S. debt burden grows - Maison Placements Canada’s John Ing]( [Consensus]( [Wall Street sees gold price declines or consolidation next week, Main Street is more optimistic about gains]( [Gold Live App]( [Kitco Mining]( [Hecla CEO Phillips Baker retires, interim CEO appointed]( CEO Phillips Baker retires, interim CEO appointed]( [Why miners are driven to M&A - David Garofalo on the resource sector's 'shrinking pie']( [Build mines that can work at whatever gold price is thrown at you - Minera Alamos Doug Ramshaw]( ['It's hard not to get excited when you see a blockbuster deal like that' - Adam Lundin on mining M&A]( [Kitco Gold Chart]( [Kitco Gold Chart]( Technically Speaking Jim Wyckoff Market Analyst and Columnist jwyckoff@kitco.com [Gold price firmer; bulls work to stabilize market]( Promotion [Silver Coin]( This message was intended for {EMAIL} , as a subscriber and/or customer of Kitco. [Advertising]( | [Update Your Email Preferences]( | [Privacy Policy]( | [Contact us]( | [Unsubscribe]( All logos, brand names and/or trademarks that appear here are the property of their respective copyright holders. © 2024 Kitco Metals Inc. 620 Cathcart, Suite #900, Montreal, Quebec, H3B 1M1 Canada.