“Gold Shining Throught the Darkening Recession Clouds” – In Gold We Trust Chartbook 2019

Since many of our readers did not have time to read the entire 340+ pages, we decided to put together a compendium of some of the most compelling charts and important conclusions of the report.

Some of the key takeaways of our new chartbook:

• Recession risks are significantly higher than discounted by the market. In the event of a downturn, negative nominal interest rates, a new round of QE, and the implementation of even more extreme monetary policy ideas (e.g. MMT) are to be expected.
• The breakdown of trust in the international monetary order is manifesting itself in the highest gold purchases by central banks since 1971.
• Gold reaffirmed its portfolio position as a good diversifier as trust in the “Everything Bubble” was tested in Q4/2018. While equity markets suffered double-digit percentage losses, gold gained 8.1% in USD and gold mining stocks 13.7% in USD.
• De-dollarization is picking up momentum: more and more countries are looking for alternatives to the US dollar, be it trading in other currencies, accumulating reserves of non-US-dollar currencies, or buying gold.
• After several years of creative destruction in the sector, most gold miners are now on a much healthier footing. Historically, the sector is extremely undervalued at the moment.

The chartbook can be read and downloaded here: 

In Gold We Trust Chartbook 2019 – “Gold Shining Through the Darkening Recession Clouds”