- In August, Shanghai Gold Benchmark (PM) rose 11% to 355 yuan/gram and the local gold premium peaked at a six-year high.
- While Au(T+D)’s trading volume in August surged to a new all-time high, gold withdrawals from the Shanghai Gold Exchange (SGE) declined again last month.
- Gold imports dropped to 44t in July, the lowest since 2017.
- The People’s Bank of China (PBoC) added another 6t to its gold reserves in August.
Goldhub blog: Posts from September 2019
On 17 September, independent asset management firm First Eagle outlined the benefits that it believes gold and gold mining stocks can bring to an investment portfolio. Today, First Eagle discusses gold’s role in detail and assesses the current drivers for performance.
In our recently published report Gold: the most effective commodity investment, we looked at how gold is under-represented in the commodity indices investors often use to gain exposure. This can have unintended consequences on portfolio performance, especially when other commodities – such as oil – can have significantly different characteristics than gold.
While the gold market is a complex place, full of interesting dynamics and uses, nothing quite gets people's attention like the gold price.
Today, we released a report on gold and commodities, covering key themes including:
- Why gold is not a typical commodity
- Why gold is under-represented in commodity indices (ranging from 3% to 12%) despite its clear differentiating benefits
- Why gold is the most effective commodity investment
When Dr Duvvuri Subbarao was Governor of the Reserve Bank of India, the country’s gold reserves increased by more than 50%. Now a Distinguished Visiting Fellow at the NUS Business School in Singapore, Dr Subbarao explains why he believes gold has such a significant role to play among central banks, particularly those from emerging markets.
Over the past 18 months, central banks have had a voracious appetite for gold. Alongside the impressive AUM growth in gold-backed ETFs, this has been one of the most prominent stories in the gold market. As we noted in the most recent edition of Gold Demand Trends, in H1 2019 central bank demand hit the highest level since becoming net buyers in 2010.