OMFIF, Sticky Inflation, and the table to end all tables

Jordan Eliseo

ABC Bullion

The Official Monetary and Financial Institutions Forum (OMFIF) recently released a research report titled “The Seven Ages of Gold”, which looked at central bank activity in the gold market, over the last two centuries. It noted that net purchasing/selling patterns fell into seven distinct periods, each lasting an average of 30yrs, an interesting factoid considering central banks turned net buyers in the aftermath of the GFC. The short-term price impact of this negligible at best, but in an a market that can only deliver circa 3,000 tonnes of newly mined gold each year, a new, and prolonged era of central bank gold buying activity can’t help but support prices in the medium term. And whilst markets focus on the US election, and a potential rate hike in December, the re-emergence of sticky inflation may be the bigger story, especially after a 35 year period which has not seen one decade of negative real returns since, irrespective of which developed market sovereign one entrusted their money too (VIEW LINK)


Jordan Eliseo
General Manager
ABC Bullion

Gold and precious metal bull since early 2000. Have spent +25yrs working in investment analytics, research & portfolio construction, with a primary focus on the role of precious metals in investor portfolios. Author of two books on investing in...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment