Huge volatility incoming for gold
Gold has been in a ascending triangle formed many decades ago, we are at the realization moment of this ascending triangle.
The stock market is currently in a "never before seen all time heights" moment, is when everybody should be cautious. Because actually, quietly since covid, gold has been intensely accumulated. Well in fact, central banks have been accumulating gold heavely since covid period (gold.org/goldhub/data/gold-demand-by-country). More than they ever have since 2010.
As you can also see on the graph, gold is on the lower end of an ascending channel (black channel), which would imply it has room to go up. With the world getting more and more focused on technological advancements, ressources like gold and other minerals will be key to go forward, not something that everybody trust to exchange which is actually just paper.
And gold and minerals will get scarcer and scarcer until we manage to mine deep see minerals or asteroids. Do you know what is the concentration of gold in the earth from which is it extracted ? 1 to 2 GRAMS per TONS (bullionbypost.co.uk/index/gold/gold-grade/), and I am being generous. More than 80% of minerals in the world are extracted from open pit mines btw, so forget about the underground mines concentration. And it is not going to get better, mines are getting depleted of their contents, we are going to be running out of mines. Global gold mine production is expected to remain flat during the forecast period (2024-2030) (mining-technology.com/analyst-comment/global-gold-mine-production-to-recover/?cf-view).
Take for instance the Olympic dam mine, located in Australia, it's expected "retirement" date is around 2055, well what do we do then ? We exchange what has been produced and is present on the market. This mine focuses on Uranium, but other mines inGhana and China will close their doors soon. By the way, I will not develop the environmental impact of mines, but it is catastrophic, for example, this latter mine consumes 35 megalitres of the "great artesian basin" water each DAY. I let you do the math from now till 2055.
Even if behind the scenes oil is used more and more despite what the green lobbying says, the "green" future with batteries, electric cars, etc. is still very much part of our capitalism. This green future cannot exist without rare earth and minerals such as gold. How much copper a fully functioning electrified vehicle uses ? 80KG of copper, 80KG. (copper.org/environment/sustainable-energy/electric-vehicles/)
Well this started about gold, but truly this post is about all the minerals, I don't think anyone can go wrong in buying Silver, copper, nickel, etc. And in the end it is less about gold, gold on the world market is viewed as a "safe haven" in times of crisis, but it's use is actually 51% for jewellry and just 8% for technology usages (researchgate.net/figure/Gold-uses-average-over-the-last-10-yearsSource-Authors-own-elaboration-with-data_fig1_349449532). But is gold actually also seen as a beacon of demand for all the minerals in the world ? Technically, I stand by my chart.
The stock market is currently in a "never before seen all time heights" moment, is when everybody should be cautious. Because actually, quietly since covid, gold has been intensely accumulated. Well in fact, central banks have been accumulating gold heavely since covid period (gold.org/goldhub/data/gold-demand-by-country). More than they ever have since 2010.
As you can also see on the graph, gold is on the lower end of an ascending channel (black channel), which would imply it has room to go up. With the world getting more and more focused on technological advancements, ressources like gold and other minerals will be key to go forward, not something that everybody trust to exchange which is actually just paper.
And gold and minerals will get scarcer and scarcer until we manage to mine deep see minerals or asteroids. Do you know what is the concentration of gold in the earth from which is it extracted ? 1 to 2 GRAMS per TONS (bullionbypost.co.uk/index/gold/gold-grade/), and I am being generous. More than 80% of minerals in the world are extracted from open pit mines btw, so forget about the underground mines concentration. And it is not going to get better, mines are getting depleted of their contents, we are going to be running out of mines. Global gold mine production is expected to remain flat during the forecast period (2024-2030) (mining-technology.com/analyst-comment/global-gold-mine-production-to-recover/?cf-view).
Take for instance the Olympic dam mine, located in Australia, it's expected "retirement" date is around 2055, well what do we do then ? We exchange what has been produced and is present on the market. This mine focuses on Uranium, but other mines inGhana and China will close their doors soon. By the way, I will not develop the environmental impact of mines, but it is catastrophic, for example, this latter mine consumes 35 megalitres of the "great artesian basin" water each DAY. I let you do the math from now till 2055.
Even if behind the scenes oil is used more and more despite what the green lobbying says, the "green" future with batteries, electric cars, etc. is still very much part of our capitalism. This green future cannot exist without rare earth and minerals such as gold. How much copper a fully functioning electrified vehicle uses ? 80KG of copper, 80KG. (copper.org/environment/sustainable-energy/electric-vehicles/)
Well this started about gold, but truly this post is about all the minerals, I don't think anyone can go wrong in buying Silver, copper, nickel, etc. And in the end it is less about gold, gold on the world market is viewed as a "safe haven" in times of crisis, but it's use is actually 51% for jewellry and just 8% for technology usages (researchgate.net/figure/Gold-uses-average-over-the-last-10-yearsSource-Authors-own-elaboration-with-data_fig1_349449532). But is gold actually also seen as a beacon of demand for all the minerals in the world ? Technically, I stand by my chart.
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