Insights

In this episode of the World Gold Council’s Unearthed podcast, hosts John Reade and Joe Cavatoni engage with Dr. Trevor Keel, Director of Material Value Ltd and Consultant for the World Gold Council.

Gold finished the year on a high, literally and metaphorically, as the LBMA Gold Price PM reached a new historical record of US$2,078.40/oz on 28 December – the final afternoon auction of 2023.

Gold price in INR rose in tandem (11% since October) with the LBMA Gold Price PM in USD, due to the stable INR/USD.

Investors often ask us if the gold price experiences any seasonal effects. The short answer is that gold tends to do well, on average, in both January and late summer. Reasons behind these effects can be linked to portfolio rebalancing, bond performance and seasonal gold demand.

In this episode of the podcast, hosts John Reade and Joe Cavatoni are joined by Tina Fordham, the founder of Fordham Global Foresight.

In the latest episode of "Unearthed," hosts John Reade and Joe Cavatoni dive into the pressing question: Why are central banks stocking up on gold?

The LBMA Gold Price AM in USD and the Shanghai Gold Benchmark PM (SHAUPM) in RMB bounced higher, both recording the strongest monthly gains since March. The local gold price premium fell from its record high, possibly driven by weaker gold demand during the month.

In Q2’23 the gold miners’ global average all-in sustaining cost (AISC) continued to climb, rising to US$1,315/oz. This represents an increase of 1% q/q and 6% y/y, maintaining the overall upward trend which began in Q1’21.

Gold has gained 3% this week largely attributed to an escalation of geopolitical tensions linked to the Israeli-Palestinian conflict.

Central banks collectively increased their gold reserves in August for the third consecutive month. They reported adding 77t to global official reserves during the month, a 38% up-tick from July’s buying. Recent buying has reinforced our confidence that the long-term trend of healthy central bank demand remains in place.

Determining the value of gold can at times make potential investors hesitant. Unable to judge what the price might do, reduces confidence in making an informed decision. Recently, gold in Australian Dollars (AUD) reached its highest ever price and breached A$3,000. While dipping slightly by the end of the first half of 2023, when is the right time to buy, or even increase, a gold allocation into a portfolio?

We’re delighted to contribute another thought-leader article published in Financial Investigator’s highly regarded magazine. In their September issue, we review the notion that whilst bonds may be en vogue, gold never goes out of style. The article supports our ongoing belief that gold has a key role to play as a strategic long-term investment and mainstay allocation within a well-diversified portfolio.

A lot has been made of the convergence of yields for cash, bonds and equities (on an earnings yield basis), with the higher yield on offer in the cash space leading many investors to reassess their portfolio exposures.

Gold price weakness in June, according to GRAM, was largely the result of a rise in US Treasury yields, a fall in volatility, US dollar strength and ensuing outflows from global gold ETFs.

Annual gold production rank in 2022 was unchanged y/y amongst the five largest gold producing nations, with China still the world's largest gold producer. Extending this to the top 20 countries, things look very different compared to 2010. But, more broadly, global gold mine production remains geographically diverse.

The latest Gallup Poll Social Series monitoring public opinion on economy and finance shows that gold jumped into second place as ‘best long-term investment’ in the US this year.