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

Jordan Eliseo

The Perth Mint

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)

Gold bull since early 2000. Have spent +20yrs working in investment analytics, research & portfolio construction. Author of two books on investing in gold and the causes of the GFC. Lover of markets, competition & technology

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