Yesterday it hit another new record - US$5000 an ounce.
It’s up 60% on last year.
If you watch this stuff closely you’ll know it’s not just happened overnight. It’s been building slowly but surely since Trump took office, and investors look for safe places to put their money.
People have been worried about the AI bubble bursting, so they out their money into gold instead of stocks. The price skyrockets.
But the speed of late has been pretty remarkable.
JP Morgan in December predicted the price would hit $5000 by Q4 2026.
It’s hit that price in Q1.
Goldman Sachs reckons it’ll hit $5400 by year’s end, but at this rate, that might be underselling it too.
Honestly, it makes you want to rip off your rings and earrings off and flog them, doesn’t it?
One thing’s for sure, at these prices, gold diggers —the prospectors, not the sort Kanye sings about— will be lining up to get the stuff out of the ground quicker than you can say fast-track.
Every time the price goes up, so too does the value of those projects.
The quicker they can get up and running in places like Otago and Waihi, the better the return for their investors.
There’s only around 200 thousand tonnes of gold that’s ever been mined. Mostly since 1950. It’s only enough to fill two or three Olympic swimming pools.
Every gold bar in a vault. Every wedding ring. Every necklace. Melted down, doesn’t amount to much.
They reckon there’s about 64,000 tonnes remaining underground that's accessible.
That makes this a rare and precious metal which will surely become more precious as the world becomes more uncertain.
Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.
3 comments:
There is no limit to minable gold, price defines the volume.
Yet the Reserve Bank and the treasury have precisely zero gold reserves. That is dispute it being designated a tier 1 asset according to the bank of international settlements. While the rest of the world hoards gold oblivious NZ sends it away.
There is a great deal of drivel shared about Gold & Silver. Those who understand the real situation watch what the Gold Antitrust Action Committee have been saying for years on their website. The msm is clueless regarding the of the massive, government-underwritten, naked short derivative positions, primarily in the US, that have held the precious metals back in a virtual pressure cooker. Well, the canary in the mine is doing its job and boy am I glad we had the foresight to garner as much of the physical stuff as we could. More fool those like Gordon Brown, who as Chancellor of the UK Exchequer, sold off a large portion of the UK's gold reserves between 1999 and 2002. The policy involved selling 395 tonnes of bullion, which represented roughly 58% of the UK’s total reserves, at a time when prices were at a 20-year low. This decision has since been widely criticized as a significant financial loss for the country, earning the nickname "Brown's Bottom". Those who hold derivatives and not physical may soon be looking at an empty hole. As for New Zealand, well it has zero official gold reserves held by the RBNZ. Our central bank sold off its last remaining gold bullion in 1991, making it one of the few central banks in the world with no monetary gold holdings. The RBNZ's foreign reserves consist entirely of foreign currency, deposits, and securities with no hedge whatsoever against the inevitable demise of all fiat currencies.
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