Gold is the asset of choice in a world of uncertainty.
The U.S. Mint reported the strongest demand in over 20 years, in the first quarter of 2022.
If you have liquidity, you buy gold to protect assets. On the other hand, if you need cash you sell to raise liquidity.
Countries needing to increase available cash sold gold from their reserves.
The World Gold Council reported that Uzbekistan, Kazakhstan, and a couple other countries sold about 6 tons of gold.
The Council also stated that Turkey added over 25 tonnes of gold along with India, and Ireland as active buyers recently.
Central bank´s global gold reserves remain above 35.000 tons according to the WGC.
As geopolitical tensions continue to rise, expect central bank´s to take appropriate action in building their gold reserves.
Tomorrow, new sanctions are expected to be announced against Russia further tightening the screws.
Default possibilities on international debt payments increase as Russia’s ability to access funds in U.S. dollars is limited.
In Washington, U.S. General, a top military officer in front of the Armed Services Committee said that the threat of an international conflict has increased significantly.
As the world sees clearly the human rights abuse and carnage of Ukrainian citizens, strong possibilities of further escalation exists.
If this weren’t enough, tomorrow, Mr.Powell will offer a few additional words of wisdom regarding his next brilliant move on interest rates.
It really does not matter what he says, the train left the station a long time ago.
Much success to all.
London – Singapore – United States
Canada – Australia – China – Switzerland
Brinks – IDS – Loomis – The Perth Mint