Record Gold Price. The World (Re)Discovers Its True Value.

Welcome to the newsletter where I help you understand the world of finance, investments, and precious metals. But that's not all – I also focus on optimizing your portfolio and uncovering prospective investment opportunities that can bring long-term growth. Today's newsletter is dedicated to gold, as its significant role has been rapidly growing recently.

Gold Price Keeps Rising

• The price of gold, both in euros and dollars, continues to break records.
• $3,000.00 per troy ounce is a significant but soon achievable milestone.
• Gold is a long-term investment, but in growing gold trends, it also offers advantages in the short term. In the past year, it has yielded a 47% return in euros.

How Much Gold Does the Bank of Slovenia Have?

• "Nowhere near enough."
• Media outlets have started asking these important questions somewhat late.

Chinese Insurers Turning to Gold

• A Chinese pilot program allowing insurers to purchase gold for the first time will unleash billions of dollars in potential investments in the precious metal and further stimulate the gold price's growth in the future.
• Ten insurance companies, including PICC Property & Casualty Co. and China Life Insurance Co., the two largest in China, will be able to invest up to 1% of their assets in gold under the program that started last Friday.
• This could mean up to 200 billion yuan ($27.4 billion) in assets.

Central Banks' Demand for Gold Exceeds 1,000 Tons for the Third Consecutive Year

• In 2024, central banks added 1,045 tons to global gold reserves, marking the third consecutive year demand has exceeded 1,000 tons.

Highest Gold Import in a Decade in India

• India is one of the largest consumers of gold globally, and this demand continues to rise.
• Currently, India is the second-largest importer of gold, right after China.
• Gold imports into India have reached their highest level in over a decade.

What Do Rising Gold Loan Costs Indicate?

• The rise in gold loan costs typically indicates increased demand for gold and/or reduced supply. At the moment, the reason lies in exceptional demand.

Rising Gold Loan Costs from 2019-2025

What's the State of the Gold Mining Industry?

• Even mining companies are experiencing significant fundamental improvements.
• Cash flow per share is rapidly increasing and is now at its highest level in the past 13 years.
• Mining companies are becoming profitable, a sight we haven't seen in years.

Physical Gold vs. Paper Gold Ratio: 1:127

• The value of annual physical gold production is $361 billion, while the value of paper positions traded on exchanges is $44,800 billion.
• What does this ratio mean for the price of gold when investors prefer physical gold over paper?

History of Gold Cycles

• A broader view of the past two cycles indicates an opportunity for a third cycle.
• There are currently far more reasons for gold's growth than there were decades ago.

Commentary

Now that the "spirit of gold" has escaped from the bottle, gold will be increasingly discussed. Its growth is not surprising. We can anticipate that the upward trend in gold will continue. However, caution – on the path to much higher gold prices in the future, corrections will also be present, which is typical for this precious metal. Long-term investors will be richly rewarded for their confidence in the most important monetary metal, but before purchasing, it is necessary to consider all key aspects of buying gold and, alongside its benefits, know its drawbacks. Consultation before investing in gold: Reserve a free 30-minute consultation.

Best regards,

Peter

The opinions and analyses cited are educational and do not constitute financial advice. I do not endorse or recommend any investments based solely on the above information and recommend consulting a qualified financial advisor beforehand. Investors must consider their financial situation, investment goals, and risk tolerance before making any decisions. I am not responsible for any investment losses that may arise from using this information. For in-depth advice, I recommend consultation via [email protected]