The stock market crashes were – alongside the devaluation of yuan – the most important recent developments in China. The stock market started rising during the summer of 2014, when the property market started to burst. The timing is no...
The relationship between stock valuations and the gold price is another widely discussed correlation. The standard view is that these two markets are negatively linked: when the stocks go up, the yellow metal dives, and vice versa.
We concluded in previous article that gold is not an inflation hedge, at least for the short or medium-term investors. So maybe it is a safe-haven, the second most important feature assigned to gold?
After gold declined to a 5-year low, the message is that gold is doomed. Is it really true? In the past few weeks, the price of gold has suffered a significant decline, indicated by multiple technical signals and triggered by China's...
As always in June, Incrementum AG (an independent asset management & wealth management company based in the Principality of Liechtenstein) published its annual “In Gold We Trust” report, the extended version of which can be downloaded...
The financial press and blogosphere are still exploring the topic of Chinese reserves. Recently, some voices have arisen that China supported the recent plunge of the gold price in order to boost its reserves. Are these opinions justified?
We have already written that China updated its official gold holdings. However, because there are still a lot of misunderstandings about the impact of this event on the gold market outlook, we will examine this issue in a more detailed way.
We have already shown that neither mining production, nor technological demand drives gold prices, since gold – thanks to its uniquely high stock-to-flows – resembles an asset rather than commodity. Before we look at the drivers of gold...
There are many opinions about what factors drive the price of gold. Among the candidates you will find: inflation rates, U.S. dollar exchange rate, real interest rate, geopolitics, oil prices, market volatility and crises, mine production...
To answer the question “what drives the prices of gold” we have to determine the nature of gold. Its complexity makes it difficult to understand, even for Ben Bernanke, the former chairman of the U.S. central bank.