Gold Getting Set For Bull Run
By: Ross Norman
GoldSeek.com
Wednesday, 6 February 2019
If, as they say, it is darkest just before the dawn, then surely for gold at least, the sun must be cresting the horizon now ?
After seven disappointing years – in US dollars at least – it is hard to shake off some scepticism. That said, gold is showing vigour in no less than 72 currencies where it is at or close to an all-time high – see here
Looking ahead – it is our view that gold is currently firing on 2 cylinders – out of 4. So the best is yet to come.
The excellent news is that gold is seeing strong buying from the highest quality, glacial if you like, and perhaps less apparent sectors – that is Central Bank buying and from institutional investors. The official sector is acquiring gold at the fastest rate since 1971 when the gold standard ended. Not only is the tonnage impressive, it is also the number of participants involved which suggests this may have legs to run. It begs the question what can they see, that others have not.
In 2018 Central Banks bought 651 tonnes of gold, up 74% from the year before. Among them, Russia stills holds only 17.6% of its reserves in gold while China is at only 2.3% – both well below the 65% that is the norm in developed economies.
The Rest…HERE
