Net inflows of gold into gold-backed ETFs came in at 400.3 tons in 2019, according to data released by the World Gold Council. ETF gold holdings grew by 14% last year and finished at 2881.2 tons.
Overall, global gold-backed assets under management grew by 37% in US dollars due to positive demand and an 18% increase in the price of gold.
ETF gold-holdings reached a record 2,900 tons in the fourth quarter. The previous record for ETF gold holdings was set back in 2012 when the price of gold was near $1,700 per ounce.
Central banks continued their remarkable gold-buying spree in November and remain on pace to eclipse 2018’s near-record purchases.
According to the latest numbers from the World Gold Council, central banks added 27.9 tons on a net-basis to official gold reserves in November. That brings the yearly total for 2018 with one month left to calculate to 570.2 tons, 11% higher than the same period in the previous year.
Gold has been surging since a US airstrike killed a prominent Iranian general. After Iran retaliated with missile strikes on US bases in Iraq, gold briefly pushed about $1,600 per ounce — an eight-year high.
Peter Schiff appeared on RT Boom Bust along with Bubba Horwitz on Monday to talk about the current geopolitical situation and its potential impact on the economy. He said tensions in the Middle East are increasing the risk premium, but there is a more fundamental reason gold is going up — Federal Reserve monetary policy. He also noted that the risks to the US aren’t so much military as economic. The US depends on foreigners buying dollars. Peter emphasized that gold is the best hedge in the current climate.
We’re told that this is the greatest economy in history. Stock markets are surging. Unemployment is low. And yet despite the good times, a shocking number of Americans live paycheck to paycheck.
Several surveys cited by MarketWatch reveal the precarious financial situation many Americans find themselves in. This is less than ideal in an economy dependent on consumer spending.
The price of silver was up better than 15% in 2019. This has led to a major improvement in investor sentiment toward the white metal, according to a report highlighted in the latest issue of the Silver Institute’s Silver News.
According to the report, silver got a boost from a host of factors, including economic and geopolitical concerns that drove safe-haven investment in precious metals.
Sometimes it’s a lot easier to sit down at the table than it is to fold your hand and leave.
Nearly four months after it started, the Federal Reserve continues to run overnight repo operations and it’s unclear when the central bank will actually end these “emergency” measures.
The Fed stepped into the repo markets last September to “unplug” the financial system’s “plumbing” with an injection of cash. It was the first such move since the financial crisis a decade ago. The move stabilized the markets, but months later, it doesn’t appear the Fed has a viable exit strategy.
Gold surged above the $1,550 mark in the wake of a US airstrike that killed a prominent Iranian general and has hit levels not seen since 2010. Monday morning, gold was trading above $1,575. As Peter Schiff put it in his podcast Friday, the yellow metal is climbing a “wall of worry.”
Job cuts due to companies going bankrupt hit the highest level since 2005 last year.
According to data released by Challenger, Gray & Christmas, 62,136 announced job cuts by US-based employers in 2019 were due to bankruptcy. That represents 10.5% of the 592,556 announced job cuts last year.
Did you have a piggy bank when you were a kid?
I did. And it almost never had anything in it.
Gold had a pretty good run in 2019. In fact, it was the best year for the yellow metal in nearly a decade. So what’s in the cards as we rush headlong into the 2020’s? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey looks back at 2019 and highlights some of the things that drove precious metals markets. Then he pivots and looks ahead at 2020 and beyond. Where are we going and what will get us there?