My Gold News | 20 February 2023

The World Is In The Midst Of A ‘Significant Macroeconomic Reset’

The world is in the midst of a ‘significant macroeconomic reset’ and gold is the ‘shining star’ – Bloomberg Intelligence

Global Nuggets

Last week, the world’s leading mints and precious metals businesses met in Berlin and Anita was privileged to be there too on behalf of MyGold. After 2 strong years for precious metal performance, where might the market go over the coming year for consumer investors? The general consensus was that with continued geopolitical pressures, particularly in Ukraine, plus global economies struggling to pull out of recession, the future prospects for gold in particular are positive. Although global stock markets are currently performing well, it is widely feared this could be a false dawn, and that a correction is due imminently. Bloomberg Intelligence is predicting a severe global economic reset and Gold is set to be one of the top commodity assets this year. Senior macro strategist Mike McGlone predicts that the world is in the midst of a macroeconomic reset. The extreme fiscal and monetary stimulus during the pandemic, followed by Russia's invasion of Ukraine, and then unprecedented synchronized aggressive tightening by central banks all have significant consequences for commodities. McGlone believes that the US$2,000 (NZ$3,150) an ounce level will be breached, hitting a new record high. **** Meanwhile, central bank gold purchases hit an all time high in 2022, setting a new record. Juan Carlos Artigas, from the World Gold Council commented that ‘gold remains a very important asset in the global monetary system, because it’s a real asset’. **** Elsewhere, commentators are reporting that silver is likely perform well over the coming months, with StoneX predicting that silver will outperform gold, with an increase of 13.8% this year. StoneX also predict a good year for Platinum – according to Rhona O’Connell, with an increase of 16.4% due to pent up demand in the auto sector and tight supply. **** As the Bank of England announce plans for a digital currency later on in the decade, the central bank joins a global list of authorities intending to make the digital switch. We believe that this will only strengthen the case for precious metal investment, as investors become more wary of a centralized money system and the ‘big brother’ control that governments will have on populations.