Gold: Can the price blow up again?

Fund managers Ronald-Peter Stöferle and Mark Valek from asset manager Incrementum in Liechtenstein have published the “In Gold We Trust” report for the 14th time. The study, which is over 300 pages long, is one of the most widely read gold reports worldwide. Last year’s edition was downloaded more than 1.8 million times from the Internet.

 

The goldprice

Gold has been one of the most sought-after forms of investment in the current year, even before the Corona crisis. Exchange-traded index products on gold recorded record inflows. The precious metal left the stock market behind in 2020, it played the role of deposit protection in the wake of the pandemic and was able to offset the severe losses on the stock market. “Gold has once again demonstrated its status as a recession hedge,” said the study authors. The fund managers see the pandemic as the fire accelerator of an overdue recession. “We are experiencing the most pronounced economic contraction in 90 years,” the duo writes. The debt-induced expansion in the U.S. has cooled since the end of 2018. They had already warned of the darkening recession clouds last year. Measured in gold, the US stock market peaked more than 18 months ago.