Gold At 3 Week High As Stocks and Dollar Fall On Trump’s Hard Line Stance Against Iran and China

◆ China has added more than 100 tons of gold bullion bars to its gold reserves since it resumed buying in December; China’s gold holdings rose to 62.64m ounces in September, an increase of 190,000 ounces in one month. ◆ The People’s Bank of China (PBOC) increased it’s gold reserves for a 10th straight month in September, reinforcing its standing as one of the major official accumulators as many creditor nation central banks stock up on the precious metal

◆ “Gold is the perfect piggy bank – it’s the anchor of trust for the financial system” says the Central Bank of the Netherlands ◆ “If the system collapses, the gold stock can serve as a basis to build it up again” astutely and prudently observes the Dutch Central Bank ◆ The Dutch people “hold more than 600 tonnes of gold. A bar of gold always retains its value, crisis or no crisis”

◆ “It may be time to replace bonds with gold”according to the just released excellent new Investment Update by the World Gold Council.◆ Central banks have shifted to a new regime of easy monetary policy, thus reducing expected bond returns.

◆ Global debt has risen to another record at $255 trillion due to cheap borrowing costs. ◆ A decade of easy money has left the world with a record $250 trillion of government, corporate and household debt. ◆ This is almost three times global economic output and equates to about $32,500 for every man, woman and child on earth.

Gold will climb to $1,600 over the next year – Goldman. ◆ Goldman is still forecasting that gold will climb to $1,600 over the next year due to investment demand. ◆ Investors should diversify their long-term bond holdings with gold, citing “fear-driven demand” for the precious metal – Goldman Sachs Group Inc.

There’s only one story in the UK this morning – it’s the day Britain goes to the polls. It’s no exaggeration to say that this election is probably the most important of the century so far. If the ruling Conservative party wins a clear majority, then some form of Brexit is almost certain to go ahead.

◆ Gold has surged to test $1,600 per ounce, up 4% so far in 2020 and building on the stellar near 18.9% gain in 2019 ◆ Gold is testing it’s highest levels since 2013 as investors diversify into gold; Goldman, Citi and other gold analysts are advocating gold bullion as important hedge in crisis ◆ Oil prices have surged with Brent crude reaching $70 per barrel; concern over oil supplies from Iran, Iraq and other nations as U.S. State Department warns of attacks on Saudi oil facilities

With no opportunity cost to holding a zero-yield asset such as gold, investors increasingly are adding it to their portfolios as a hedge. ◆ Gold retains its intrinsic value, something no paper currency has managed to do over history. ◆ Gold is insurance. Insurance isn’t supposed to make you rich; it’s supposed to keep you from being poor.