Daily Gold Market Report

Gold edges higher in the aftermath of the Sintra central bank conclave
‘It remains unconventional despite its extremely long and illustrious track record.’

(USAGOLD –6/30/2022) – Gold edged higher in the aftermath of the central bank conclave in Sintra, Portugal, as markets generally dug in for more tightening and the threat of a recession. It is up $3 at $1823. Silver is down 10¢ at $20.71. ByteTree’s Charlie Erith addresses a question topmost on many gold investors’ minds. Why is gold so widely ignored in professional money circles? He comes away with a very down-to-earth answer: They do not make significant fees by promoting it like they do with stocks and bonds. In fact, he says, the incentive is to ridicule it.

“[Warren Buffett] points out that it doesn’t pay dividends or generate a return on capital,” he writes in an analysis posted on the firm’s website. “Fine. But it also doesn’t have profit warnings, rights issues, lawsuits, new competition, patent cliffs, asset write-downs, leverage, liquidity mismatches, management scandals, or fraud. It is just a blob of uncopiable metal that sits there, quietly ticking higher over long stretches of time as governments debase currencies.… Central banks and doomsters are the outliers who understand this. For the rest of the world’s investors, ownership of gold as part of a long-term savings strategy remains unconventional, despite its extremely long and illustrious track record. This has particularly been the case during eras of high inflation and political unrest, such as we face now.”

Bar chart showing annual gain or loss in the price of gold 2000 to present
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