This is Jalonomi's weekly review of interesting precious metal news from various sources around the world. Our goal is to provide readers with an easy and quick access to the developments in the precious metal market on a weekly basis. We particularly focus on news related to investment gold.
This week in our review:
- Kitco News: The decline in currency value matters to the investor
- The Canadian Press: Canadians are actively buying and selling gold
- Markets Insider: 10% allocation of assets in physical gold is a "good move"
- Banyan Hill Investing: September is the golden month for gold investors
Kitco News: An investor cannot be indifferent to the decline in currency value
Willem Middelkoop, the founder and CEO of the Commodity Discovery Fund, has a particularly positive outlook on the price development of both gold and silver over the coming decade. According to him, general investment funds are now also transitioning into the gold market, as they cannot remain indifferent to the depreciation of currency value. He sees this development as having begun particularly in 2019, when billionaires like Ray Dalio started to rave about the excellence of precious metals.
Middlekoop says he can see the price of gold rising to as much as $10,000 an ounce over the next ten years.
“We need a new anchor for the world's monetary system,”
he says. Middelkoop also says he likes silver and sees potential in the price of silver reaching three-digit numbers. “It’s just a matter of time before silver hits $50 an ounce and even $100 an ounce, and the price rally won’t be over then. It will take years before we see $200 and $300 prices. I see a huge, huge upside potential.”
Middlekoop also emphasizes that he cannot underestimate the importance of owning physical gold for an investor. Speculation can work, but a sufficient physical allocation is also necessary to ensure the permanence of the asset.
Read article in English/ Neil Christensen, Kitco, 4.9.2020
The Canadian Press: Canadians are actively buying and selling gold
The rising prices of gold and silver have tempted Canadians to sell their extra jewelry and invest more in precious metals in hopes of greater returns. Aditya Nagaraj, the manager of the gold buying and selling business Canada Gold in Toronto, says they have been experiencing extremely busy – perhaps the busiest – times to date, as prices have risen in recent weeks. Interest began to grow when the price of gold surpassed $1800 an ounce for the first time since 2011.
Some of the sellers have exchanged their rings and necklaces for cash to cope with unemployment and challenging times in the economy. According to Nagaraj, however, most of the customers have been wealthy residents of the Toronto area, particularly older individuals who no longer wear the gold jewelry they acquired. He states that people are holding onto these items for a better time and a better price – and now seems to be the right time to sell.
Read article in English/ Ross Marowits, The Canadian Press, 20.8.2020
Markets Insider: The gold price rally may be on pause, but the world's largest asset manager believes that 10% in physical gold is not at all a "bad move"
Gold has been one of the biggest bull markets in 2020, with prices reaching record highs and attracting a record amount of investments. The price rally has slowed down over the past month, raising the question of how much gold an investor should hold. Charles Day, an advisor and senior portfolio manager at UBS Wealth Management, told Business Insider in an interview:
“In my view, the price rally is currently on pause. However, from the perspective of diversification and everything that has happened, a 10% investment in gold is not a bad move right now.”
Day first bought gold in 2016 when the price was around $1600. At the time of writing this article, the price of gold is around $1926. According to the author of the article, Day's perspective reinforces gold's position as a good hedge against a weak dollar. Day says, “It can be a good hedge considering the current interest rates, the dollar, and the market situation.” A weaker dollar generally supports an increase in gold prices, as it makes gold, priced in dollars, cheaper for non-American investors.
Read full article in English/ Saloni Sardana, Business Insider, 5.9.2020
Banyan Hill Investing: September is traditionally the golden month for gold investors
Gold investors have been watching the gold price rally this year, ready to jump in as soon as the price drops. However, these buying opportunities have not materialized. The price of gold has been up over 20% since late April. The price has not decreased. However, there is good news for those who missed the ride: history shows that gold and gold stocks tend to perform worse in September.
This information may assist investors who have not yet participated in the current price rally and current investors in adding gold to their portfolios, according to the article's author. It is possible that the price of gold may see a decline in the fall, but this should primarily be viewed as a buying opportunity, according to the article.
Read article in English/ Michael Carr, Banyan Hill Publishing, 12.8.2020
