Gold price ahead of the Thanksgiving weekend
During this period, gold is usually just before forming a short-term top and starting the biggest decline within the final quarter of the year.
Incrementum’s ninth annual In Gold We Trust report analyzes gold primarily as a monetary asset and not as a commodity.
The Liechtenstein-based asset managers conclude that “the competitive position of gold relative to paper money and other asset classes has improved considerably in recent months.”
But the authors also show that relatively speaking gold and silver share of global financial assets is rapidly diminishing.
“Comparing the market capitalization of gold and silver with that of other asset classes, it becomes clear how underrepresented the precious metals sector is” says Incrementum:
Considering the market capitalization of the 16 largest unhedged gold producers, the Gold Bug Index, versus other equities “shows a similar valuation discrepancy”:
A historical comparison between the value of the global stock of gold and US financial assets also confirms this assumption says Incrementum.
The value of all the gold ever mined – roughly 180,000 tonnes – amount to only 3.3% of the value of all outstanding US financial assets. That compares to nearly 20% in 1934 and an even higher proportion in 1982:
Below is the entire report, well worth the read:
[gview file=”https://mining.com/wp-content/uploads/2015/07/In-Gold-we-Trust-2015-Extended-Version-e.pdf”]
Image by Teddy James
6 Comments
Rod B
One of the largest bubbles of the western hemisphere is reliance on the social media and computer expertise to carry the load that historically was carried by hard work and thinking about solutions. Your Apple watch will not do when the power is off and you can’t charge it. Nor will QE help when the cascade of lending institution failures arrive as a result of Gexit, and Spainexit, and Irelandexit, and Icelandexit, and etc.exit occur over the next few months to few years. Bitcoin will not help the millions in food lines. Gold will not either, but gold’s intrinsic value will become appreciated by three generations of persons that have taken the easy way to get things done.
C Gilroy
How will it be appreciated? Will we admire its glitter while starving? Gold clearly isn’t the answer given the relative value and inability to verify the value of what you are holding and hoping to exchange for some bread.
EastWestTrade
My conspiracy hat says Central banks are undermining gold until their reserves are sufficiently rebuilt for conversion to new currency base…it’s a comin!
Steve F
The demise of gold and silver has been predicted for centuries but they always come back. After the ashes have cooled from the coming melt-down gold and silver will still be there as money for the next civilization. Buy it now and keep it at home.
klgmac
So why are so many Central Banks repatriating their gold? Watch what they do, not what they say.
rayban
Main problem with exchanging Gold for food and what not is that you likely get robbed as likely receive your items . Trade would predominate and Gold as well as precious metals would take time to reassert themselves fully . As trade resumed they would be a natural answer . That all in an ultimate apocalypse , ie asteroid hit , pandemic disease , nuclear accident , world collapse , whatever …
I own Silver and Gold as protection , it whips fast inflation and adds hard value to a porfolio . If you buy right you may even get Capital Gains . Silver coins look nice as well and Gold is near scarey to the uninitiated .