USD $4,127.96
Goldman The Real Reason Why Gold is Rising and Rising in Price. +A$100,000?
Read all, to get the real reason Gold may hit +$100,000 ounce.
Why are central banks of countries buying gold? Why do they hold Gold in reserves?
Gold is held as a hedge for counties foreign exchange reserves. For example China in 2024 held 2,280 tonnes (71.9 million ounces) of Gold which was 5% of its foreign exchange reserves. If Gold even reaches $10,000 (let alone $100,000) an ounce Chinas Gold will account for 15% of its foreign reserves and strengthen its currency. So the higher Gold rises the higher the central banks foreign reserves rise. So with Central Banks all buying Gold higher they are increasing their foreign reserves.
This is also a substitution for flat currencies. So theoretically Gold, could increase to $50,000 or beyond to $100,000 per ounce. Ok get that, now my conversations with a dozen listed gold producers on the ASX that have all said: “dealers and traders are buying our gold quicker than we can mine it.” Australian Gold Company (ABC) are refining 600 kilograms (19,300 ounces per day) $A100m every day and cannot catch up.
The US Geological Survey and World Gold Council estimates the entire gold reserves in the earths crust will be mined from the earths crust by 2057 .The Gold Code for Gold price rising and rising are only because of the 3 reasons below and no other reason, not because gold is a safe haven.
1. Central Banks buying forcing price up to increase foreign exchange reserves.
2. Traders buying Gold forcing prices up to a max ready to sell down upon a glitch or a bubble burst or war.
3. Gold Certificates issued on a ratio of between 10& 3,000 ounces of Gold from each physical ounce. When the customer comes to collect the physical or redeem for the new cash price: well there is none. Already happening in the UK where owners are waiting currently 8 weeks for delivery or redeem for cash.
So with all these forces buying Gold, there is theoretically nothing standing in its way to $50,000 to $100,000 per ounce.
Governments need to diversify their portfolios. holding a variety of investments mitigates the risk and ensures safety. Gold is also a safeguard and hedge against inflation, which boosts confidence in a nations economy.
America has the world’s largest Gold reserves with 8,133.46 tonnes of Gold. At the other end of the scale: Canada does not have “NOT ONE SINGLE OUNCE OF GOLD”
