• Investors buy more gold than mines produce

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    Figures from the World Gold Council show that 134 tonnes of gold were added to ETFs this month.

    In addition to ETFs, investors are also buying ingots and coins, and in 2019 demand for this type of product was 145% higher than that for ETFs.

     

    If we calculate and extrapolate it all, we come to the conclusion that demand will be around 500 tonnes this month.

    Now you should know that 3,500 tonnes of gold were produced last year. That's just under 300 tonnes a month.

    500 tons of gold, that's about $29 billion at the current price.

    Investors around the world are buying $29 billion worth of gold this month.

    In fact, it's just a drop on a hot plate.

    $29 billion... while just $12,000 billion worth of bailouts were presented.

     

    goud It's nothing yet.

    In the past, 40% of money was covered by physical gold. If $12,000 billion extra money was created, $4,800 billion had to go toward gold. Just to give you an idea.

    I only expect the real acceleration when savers and investors become worried about the value stability of money and savings accounts and investments shift towards gold. Today we are still a long way from that. A few years at least.

    So don't be fooled by the new high in gold. The engine has just started and there is still a lot of petrol left in the tank.

    And those who prefer to buy when the prices are bottoming out, can do so today in the silver market.

    Here the total global investor demand last year was around $240 million per month.

    $240,000,000 ... while $12,000,000,000 was pumped into the system.

     

    Do you see the opportunity?

    See how a little extra demand will push the price to heights unimaginable today?

    Recently, Bloomberg published a report indicating that bitcoin (BTC) may be getting ready for a new bull run. The report mentions several points as to why bitcoin will experience the possible price rise.

    For example, the report, called "Bitcoin Maturation Leap", states that bitcoin and gold are expected to rise mainly as a result of the COVID-19 influences on the market. This is also because both are often seen as hedge products. The correlation between bitcoin and gold has risen to new heights, according to Bloomberg. In addition, it is stated that bitcoin will undergo the transition this year from a risky, speculative commodity, to the crypto version of gold. They also indicate that this year will be the ultimate test for bitcoin, but that they are optimistic about the outcome. Bloomberg writes:

    This year confirms Bitcoin's transition from speculative assets at risk to the version of gold on the crypto market.

    Bloomberg further describes that the advent of bitcoin futures has caused the bull market of bitcoin to fail and be inhibited. The increasing interest, decreasing volatility and better performance compared to the stock market says something about the future, according to Bloomberg. Bitcoin will leave the speculative part behind more quickly. The volatility will get less and less. This is important as bitcoin's volatility was at its lowest in October 2015, and this was the beginning of a bull market.

     

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    It also describes that bitcoin is currently undervalued based on some factors. On April 2 the indicators indicated that bitcoin should be around $9,000, but at that time the price stood at $6,600. Especially in these times when central banks are pumping billions into the economy, it is a good time for bitcoin to show that bitcoin can become the new gold.

    April 27, 2020
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