Gold rally: Why China and other central banks have buying up record amounts of gold

Gold (GC=F) has been on a tear driven by geopolitical tensions and the bullion's safe-haven appeal. Citigroup (C) is the latest in a lineup of Wall Street banks to upgrade its forecasts for the precious metal's price. Sprott Asset Management CEO John Ciampaglia and GraniteShares founder and CEO Will Rhind join Market Domination to discuss the primary drivers of gold's rise and future directions for the commodity.
On the magnitude of gold's strength, Ciampaglia states gold exited its slumber late last year after the Fed signaled a "pivot" was underway, a positive for gold as it competes with interest-bearing investments. Another key factor, Ciampaglia adds, is buying by central banks seeking to diversify away from US dollars as part of their overall foreign exchange mix. China is the leader in this particular de-dollarization strategy, Ciampaglia says, with Turkey, Singapore, and India following suit.
Noting gold's strength amid macro factors, Rhind believes gold could hit $3,000 per ounce if there is further unrest in the Middle East. The GraniteShares founder advises investors to play gold through its ETF for direct price exposure. Gold has unique attributes as a safe-haven asset, Ciampaglia says, balancing against traditional stocks and bonds during times of unrest.
Institutional investment in gold is lower at the moment, Ciampaglia adds, but if those dollars begin to enter the market, the commodity could be pushed to "new highs." The other "missing piece" in the gold market, Rhind says, is a "fear premium" that pushed the market to the highs observed in 2020.
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[@generalchemistrywithmike]

Holy cannoli, they actually ran a story about silver and gold.

[@NHJDT]

It's because the $ is being devalued at a massive scale. The gold is all moving to the east. That's true wealth. Folks, save yourselves and run to Costco and trade your worthless paper currency into physical gold and silver

[@edited6622]

If you don’t hold it you don’t own it.!

[@trailguy]

The question is why it’s taken so long for gold to rise after all the stimmy checks. Gold doesn’t track monetary inflation in lock step, but it does do it, the timing is on its own table. 40% of all dollars ever printed were printed in a short time, gold will account for it.

[@Steiwerd]

Sell some of the gold and buy yourself a new mic.

[@Karim-ik5ij]

It's the room acoustics.

[@StephanieTroy-dp5gp]

Gold appears like a wise investment, especially in light of the recent volatility in the market.

[@deepakshetty1965]

Metal Explorations (MTL), good earning, ROCE

[@Heerdennienaber]

What are the best additions to a $600k portfolio to boost performance?. ETH is Up and will do better, I believe as indicators for profits continue to improve, investors like me believe that "Santa has come early" to the markets...

[@meyerdebeer-je6vi]

I think you're better off with majority investment in bitcoin and uprising equities cos they always outperform. Alternatively speaking to a certified market strategist can help with pointers on which to acquire.

[@Heerdennienaber]

wow massive gains! my partner recently hinted on going same direction.. what did you invest in, and who is your investment advisor please, if you don't mind me asking? in dire need of asset allocation.

[@meyerdebeer-je6vi]

Elissa Dawn Sharon is the licensed advisor I use. Just research the name. You'd find necessary details to work with to set up an appointment.

[@Heerdennienaber]

Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals.

[@sheepman6291]

I would not invest any of my 600K in Bitcoin. Gold is going to go up even if the Chinese guys sell their share. With Gold this high the miners will do fine over the next 3 years.

[@siiwok]

DGP has doubled already...GLD all time high...NEM is still cheap..all will double soon again..

[@john-ze7eu]

It's most likely a major new buyer(s) stepping in and making huge purchases. Not central banks.. their buying is mostly reported and expected. It's a very wealthy individual(s) or family buying. A Zuckerberg or Musk type of money...

[@rudeawakening3833]

Wrong . Central banks doing ALL MAJOR buying . Not trying to be disrespectful or give my opinion . I’ve been following this too much many hours a day - 7 days a week for the last 4 years …

[@andrewereynolds5840]

💎 Blackrock Gold 🪙 ETF (IAU) 💎

[@TurdFergusen]

Rule #1: Yahoo lies to you

[@user-ps3hp2cx7t]

Го фармить скины! я уже покрутил ол ин кейсы, но пока получилось выбить только юсп) хочу калашик этот

[@ClearOutSamskaras]

Farmer.

[@moonwalker8490]

As a generation z’er - what the hell is gold? Is this the 1800s ? Let me go grab my pick and shovel 😅

[@avocadoarmadillo7031]

Bitcoin might be all the rage right now (so were tulips at one point) but consider for a moment that while the US and Chinese treasuries, respectively own 207,000 and 190,000 Bitcoins as of the latest data, those two nations owned an estimated 8,133 and 1,948 tonnes of gold in 2021 (much more since then). For the US, that's $13 billion in Bitcoin and $568 billion in gold, at today's prices. So what is more important in the eyes of the world's most powerful nations? :D

[@etohi]

Before paper currency the world used gold and silver as money. Civilizations across the world settled on using metals as money. Gold was used because of its properties, it doesn't decay, has market uses, and governments cannot make it out of thin air. These attributes, make other commodities like wheat or cattle unsuitable as money. Up until 1971 the central banks had their currency pegged to the dollar. Nixon closed the gold window exchange and countries started using pure paper currency. This allowed central banks to "create money out of thin air."

[@TurdFergusen]

@@avocadoarmadillo7031what happens when russia cuts all the undersea internet lines

[@NHJDT]

Instead of sounding naive you should do your homework on the history of money. All paper currencies have gone to 0 over time while gold and silver hold their value. And no, I'm not a boomer

[@cl5619]

@@etohithe main flaw with gold as a peg to a currency is that it’s not verifiable. Over and over again, paper has counterfeited claims on gold, as it did in the US before Nixon closed the gold window. And even today, gold and silver bugs complain about the untrustworthiness of the futures markets where paper and leverage suppress the price.

[@sheepman6291]

1oz of physical in case of emergency and you need to pay a doctor and the power has been out for a month. The rest in ETF.

[@PoloPirate]

If you don't hold it you don't own it

[@Raj_1201]

Power comes back on, and ETFs are reset to zero 🤣👍🏽

[@SDM496]

10 percent of your savings in gold and silver.

[@SolomonTheStoryTeller]

gold is over hyped. it produces nothing. it costs 1300-1400$ to produce an oz of gold. 2400+ for an ounce of gold is too much. I wouldn't buy gold for a thousand dollars more if i have dollars just as i wouldn't buy bitcoin for more than 30k knowing it costs roughly 20k to produce a bitcoin

[@dennistupper8262]

Sounds like you dont know what REAL MONEY IS And Why .... Good luck holding onto your paper... One day you will be able to use it for toilet paper or starting a fire ...Just ask other countries about what they use their fiats for once it collapses ....

[@vincentyeo88]

60 percent of adults in America don't even have $1,000 cash for any emergency. Gold is out of reach for these people.