Gold hasn’t been going along for the market ride this year. The metal trades for around $4,500, well off its peak closer to $5,500.
But price isn’t keeping buyers away. Central banks continue to increase their gold holdings amid the recent dip:
The U.S. dollar has not only lost the top spot among foreign bank holdings to gold, but the trend has also accelerated this year. (Source: Bloomberg)
Turkey has been the odd man out among nations this year. The country sold gold to boost the lira when oil prices soared following the outbreak of war with Iran.
But it’s clear from this chart that central banks continue to add gold. And as for U.S. Treasury assets, they’ll likely see more drawdowns over time. What’s really telling right now isn’t the rush out of Treasury bonds – it’s the move into gold.
Strong central bank buying can create a strong demand for gold. Yet gold miners continue to find smaller strikes than in the past.
Even with gold prices off their highs, earnings continue to look fantastic for gold mining stocks year over year, and some have started to trend higher in recent weeks.
With gold knocked down to around $4,500 following a peak closer to $5,500, high profitability and resumed central bank demand suggests now is the time to buy a gold mining stock, ideally one with high volume.
To find out the top high-production gold mining stock today, become a member of Grey Swan Pro — details here.
~ Andrew
P.S. Tomorrow on Grey Swan Live!, Mark Jeftovic will join us as we cover the latest developments in the crypto space – including the Clarity Act and the Fate of Dollar 2.0.
Crypto has taken a backseat to the AI trade in recent weeks, but those lamenting the poor performance of crypto may not have much longer to wait with so many positive catalysts on the horizon.
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