◆ Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend.
These seven charts, says Dominic Frisby, reveal why gold could soon “go bananas” writing in Money Week
It’s all about gold today, folks.
This is the week that Incrementum AG puts out its annual research note, In Gold We Trust.
It’s one heck of an undertaking by the Liechtenstein investment company – over 18,000 hours of research have gone into its 300-plus pages.
And now I will attempt to distill it all into some 900 words.
Corona is an accelerant for the gold market too.
The main authors of the Incrementum AG report – Ronald-Peter Stoeferle and Mark J Valek – are, as you might expect, pro-gold. Many MoneyWeek readers will feel the same way – I know I do – but we should still lay these cards on the table up front.
But goldbug or not, the analysis of these reports over the years has been consistently level-headed. Before I share some of their charts, let me just distil their key takeaways.
We have mentioned many times on these pages how corona has accelerated things that were likely to happen anyway: the rise of remote working, shopping, education and healthcare, for example.
Stoeferle and Valek argue that corona had done the same for a long overdue recession. It was coming anyway. Now it’s here. Gold is “the seventh sense of financial markets” and it has been outperforming stocks for over 18 months now. Covid has made this more apparent.
Full article with charts on Money Week here
NEWS and COMMENTARY
Gold marginally lower for third straight week on economic recovery hopes
Gold marks first gain in 4 sessions on weakness in U.S. dollar and stocks
Wall Street Warning to Corporate America: Get Cash While You Can
Virus-hit German industry orders plummet 25.8% in April
Germany will need 2 years to recoup growth lost in recession, Bundesbank says (-7.1% GDP in 2020)
GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)
04-Jun-20 1706.45 1700.05, 1363.97 1353.58 & 1523.86 1507.77
03-Jun-20 1717.60 1705.35, 1364.80 1355.41 & 1531.41 1519.81
02-Jun-20 1740.25 1742.15, 1385.76 1386.58 & 1556.83 1556.44
01-Jun-20 1734.80 1730.60, 1398.77 1393.13 & 1559.76 1556.16
29-May-20 1725.65 1728.70, 1401.92 1399.73 & 1550.15 1554.97
28-May-20 1723.30 1717.35, 1403.28 1398.27 & 1564.93 1556.61
27-May-20 1705.15 1694.60, 1385.95 1382.12 & 1552.71 1541.92
26-May-20 1722.75 1720.25, 1399.22 1393.57 & 1571.32 1566.63
22-May-20 1732.45 1733.55, 1421.99 1423.59 & 1588.83 1590.71
21-May-20 1732.80 1724.90, 1417.78 1410.45 & 1580.49 1571.04
19-May-20 1735.25 1737.95, 1416.14 1418.34 & 1584.11 1589.01
