Blaszczyk says current global developments are reshaping gold's traditional role, driven by interest rates, inflation, safe haven demand, and geopolitical shifts from west to east.
Central banks specifically hold gold for several reasons. The number one reason is gold serves as a long-term store of value, and it creates a hedge against inflation.
We saw flawed labor metrics from the Fed, showing how broken their gauges are. Wars in oil-producing regions are driving up oil prices, raising costs, and damaging the Fed's inflation fight.
Hoye notes that in England, gold's price was fixed for 150 years under the gold standard, but when adjusted for CPI and CRB, it fluctuates with markets and recently hit a new high.
By restoring sound money principles, we eliminate the need for trust in central banks, ensuring more stable and predictable economic interactions over the long term.
Long's analysis highlights contradictions in Chinese gold data, noting $200 billion in missing purchases, echoing points made by your secretary/treasurer.
Norinchukin believes the Fed will delay rate cuts, unlike US investors. It plans to realize losses now, fearing holding US assets longer could worsen the situation.
Gold prices rose 29% since June 2021, from $1,800 to $2,320 an ounce, while CPI increased 12.3%, per BLS data. Gold outpaced inflation by over double, proving a strong inflation hedge!
Present changes in the global gold market, in which pricing power is shifting East, could be a precursor to a transformation in the international monetary order.
