A different topic: WHY IS THE PRICE OF GOLD BULLION RISING?
Being a long-term believer in the intrinsic value of GOLD, it set me wondering just what is behind the current rapid upward move to around US$2400/Aus $3600 per ounce for this non-interest bearing investment.
An article I read over the weekend supports the view that the clock is ticking on a fragile world peace, with Central Banks in many countries, including Russia, India, Singapore, Poland, Brazilian, Turkey and UAE and especially China, collectively buying up thousands of tons as stockpiles against future uncertainties. (or do they know something we don’t?) China was even quoted as paying up to $120/oz premium to secure its supplies!
INFLUENCING FACTORS.
Certainly a number of influences contribute to the rising price of GOLD: lowering of interest rates, uncertainty in the Stock Markets, demand for jewellery, world economic and conflict uncertainties and instabilities, with this last one cited as the key driver.
Talking China and its want to ‘Re inherit’ Taiwan, Pres Xi told President Biden in 2023, that in relation to Taiwan, ‘look, peace is all well and good but at some point, we need to move towards resolution’!
The article goes on to say that China may well have built its reserves to over 30,000 tons of Gold, with this following the historic processes undertaken by other countries in advance of the start of major world conflicts.
It further says that with 2025 tipped as the likely trigger for a fully prepared China to ‘exercise its inheritance over Taiwan’, and the implication that this has held for the rising price of GOLD, don’t be too surprised to see it perhaps rise even higher in the times ahead.
I thought that this was an interesting article, and it certainly helped answer my question re the rise in the price of GOLD!!
Kenn.
Kenn Williams
0428 472619