It’s not just central banks that have been on a gold buying spree, the wealthy are on a buying spree of their own, filling vaults in London with physical gold.
GOLD’S RALLY IS THE BEST IN 46 YEARS
September 24 (King World News) – Gerald Celente: The value of gold has rocketed up 40 percent this year, more than during the Great Recession or the COVID War, The Wall Street Journal noted, with futures up more than at any time since 1979’s global energy crisis set off runaway worldwide inflation.
The metal reached a record $3,682.20 on 15 September and traded at $3,683 at 5 p.m. U.S. EDT on the 19th.
Part of the reason, in addition to ongoing wars in Ukraine and the Mideast, is the world’s move away from the dollar.
The U.S. cut off Russia from the international clearinghouse for interbank transactions. That introduced an element of instability into the world’s financial system. Central banks and the Chinese government began shifting more of their reserves out of dollars and into gold…
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This year, Donald Trump’s tariff war has roiled global trade, slowed the U.S. economy, and threatens to do the same worldwide. U.S. inflation is on the rise again after falling sharply for more than two years.
Trump has now made U.S. economic statistics unreliable and is threatening the independence of the U.S. Federal Reserve, a cornerstone of the global economy.
As a result of the turmoil, the dollar has seen its worst half of a year since the 1970s, the WSJ said. Investors have fled the dollar, pouring their assets into something more likely to hold value. Hello gold.
Retail investors have joined the stampede. In the U.S., gold-focused exchange-traded funds have jumped 43 percent in value this year. March and April, the months in which Trump’s tariff announcements were prominent, were two of the three biggest months for net inflows to the funds since at least 2014, the WSJ reported.
Gold got another boost over the summer as the Fed signaled it would cut interest rates. As interest rates fall, interest-bearing investments lose some of their allure. Gold has been appreciating far faster than government bonds.
Also, with inflation rising, corporations are likely to face higher borrowing costs and lower profits, making their stocks and bonds less attractive.
“With Trump in the U.S. and Putin in Russia, a lot of people think, ‘is this going to get worse?’,” Sean Hoey, managing director of IBV International Vaults London, said to the WSJ.
IBV’s clients have been filling the company’s underground safe deposit stores with gold, he said.
“The majority of people are buying, thinking [the price] will go up more, rather than selling,” he added. IBV is planning to double its storage space to accommodate gold bugs.
CHINESE GOLD MINER PREPS $3.2-BILLION IPO
Zijin Mining, a major Chinese gold mining company, is preparing a public stock offering in Hong Kong that will spin off its overseas assets into a separate company. Gold’s recent record price is expected to bring Zijin at least $3.2 billion, which will fund the company’s ongoing domestic expansion.
Zijin will issue about 349 million shares at HK$79.51 each, the Financial Times reported. The spinoff, to be called Zijin Gold, includes assets in central Asia, Australia, Colombia, Ghana, and Serbia.
The IPO will be the world’s biggest since May, when CATL, China’s leading battery maker, made a $5-billion offering, also over Hong Kong’s exchange.
Private equity firms Blackrock, Oaktree, and Shroders, and Singapore’s sovereign wealth fund have collectively pledged to buy about $1.6 billion worth of the shares.
The island city’s Hang Seng index has been among the world’s most lucrative this year as a wave of Chinese tech companies have gone public on the Hang Seng. Foreign investors can put money into mainland Chinese companies through Hong Kong’s stock market.
The new entity will use the IPO’s proceeds to pay the final costs of acquiring a mine in Kazakhstan, develop a Ghana site, and buy into a mine in Suriname, a South American country, Zijin announced.
Gold’s price has rocketed up 40 percent this year and, in 2024, supplanted the euro in central banks’ apportionment of reserve assets.
Her Gold Price Predictions Have Been Deadly Accurate
Nomi Prins: “I think what’s happening in gold, and you’re right I did recommend all of those forecasted points on gold. We’ve hit them. I just put out a piece yesterday about the case for gold going into the final quarter of 2025 and moved my price prediction up to… CLICK HERE OR ON THE IMAGE BELOW.
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