Kitco News reporter Anna Golubova wrote a good article on a current topic on January 18, 2018. Below is a brief summary of the article.
If central banks around the world catch the so-called "gold fever" and continue to increase their gold reserves, the price of gold could rise above $1400 an ounce by 2020, writes TD Securities.
This would mean about 40 euros per gram at the current exchange rate. This forecast is also supported by history; the average increase in the price of gold has been 9-10% per year over the last 16 years.
The Bank of Canada predicts that the price of the precious metal will rise to $1350 an ounce by the end of the year, and will rise further above $1400 in 2020.
Bart Melek, head of global strategy at TD Securities, wrote in a report published on Thursday about the price of gold. Melek provides comprehensive reasoning regarding the rise in gold prices and the gold reserves of central banks.
The bank describes the properties of gold as an investment instrument and mentions several reasons why central banks around the world are interested in increasing their gold reserves, including a multipolar world that the United States must learn to share due to the growing Chinese influence.
There is still a lot of room for growth in gold reserves, with gold accounting for about 10% of state assets.
In China, Russia, India, Mexico, and other developing countries, there are only a fraction of the reserves in gold, certainly a much smaller share than in the United States, Germany, Italy, and France," writes Melek.
In addition to well-known buyers such as Russia and Turkey, other central banks have participated, including Egypt, Poland, Hungary, India, Indonesia, Thailand, and the Philippines.
The main perspective on gold prices is that the increase in banks' gold reserves limits the physical supply of gold, the report emphasized.
You can access the original article here: https://www.kitco.com/news/2019-01-17/Central-Banks-Gold-Fever-To-Trigger-A-Price-Jump-Above-1-400-TD-Securities.html
-MK
