{"id":55515,"date":"2020-11-03T07:27:30","date_gmt":"2020-11-03T12:27:30","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55515"},"modified":"2020-11-03T07:27:30","modified_gmt":"2020-11-03T12:27:30","slug":"the-main-driver-of-the-global-gold-market-totally-reversed-this-year","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55515","title":{"rendered":"The Main Driver Of The Global Gold Market Totally Reversed This Year"},"content":{"rendered":"
\n

The Main Driver Of The Global Gold Market Totally Reversed This Year<\/a><\/h3>\n<\/header>\n
\n

Something quite interesting took place in the gold market this year that hasn\u2019t happened before.\u00a0 Let\u2019s just say the global gold market\u2019s main driver has totally reversed and is setting a new precedent.\u00a0 However, this is just the beginning as the world hasn\u2019t quite figured out how bad the situation will become as the global economy continues to disintegrate.<\/p>\n

So, what\u2019s the main driver of the gold market this year??\u00a0 Well, I can tell you what it isn\u2019t\u2026 it\u2019s not gold jewelry demand.\u00a0 World gold jewelry demand has been the leading driver of the gold market for decades.\u00a0\u00a0The chart below shows how much more annual gold jewelry demand has been versus investment demand over the past decade.<\/strong><\/p>\n

\"\"<\/p>\n

If we add up all the annual totals for the 10-year period, there were 22,734 metric tons of gold jewelry demand (731 million oz) versus 13,015 metric tons of net gold investment demand (418 million oz).\u00a0\u00a0And, if we go back to 2000 or 2001, the ratio was much worse.\u00a0 According to the World Gold Council Gold Demand Trends data, there was a total of 166 metric tons of retail gold investment in 2000 compared to 3,204 metric tons of gold jewelry demand.<\/strong>\u00a0 So, the main driver for the gold market before the 2008-2009 financial crisis was jewelry demand.<\/p>\n

However, this all changed in 2020 as the pandemic forced the Fed and Central Banks to do what they do best\u2026 PROP UP THE ECONOMY & FINANCIAL SYSTEM, but on steroids.\u00a0 This has a profound impact on global gold investment, especially in the west.<\/p>\n

As we can see in the chart below, global gold jewelry demand reversed with investment demand as being the main driver of the gold market.<\/p>\n

\"\"<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Main Driver Of The Global Gold Market Totally Reversed This Year Something quite interesting took place in the gold market this year that hasn\u2019t happened before.\u00a0 Let\u2019s just say the global gold market\u2019s main driver has totally reversed and is setting a new precedent.\u00a0 However, this is just the beginning as the world hasn\u2019t […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,374,2908,647,12073,3650],"class_list":["post-55515","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-gold","tag-gold-market","tag-precious-metals","tag-srsrocco-report","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55515"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55515\/revisions"}],"predecessor-version":[{"id":55516,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55515\/revisions\/55516"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}