Gold trends last year

For those that missed it, World Gold Council released a report a few days ago about the gold trends in 2016. World Gold Council report highlights:

  • 2016 was the second best year for ETFs on record. Global demand for gold-backed ETFs and similar products was 531.9t – the highest since 2009. Q4 saw outflows.

  • The gold price ended the year up 8%. Having risen 25% by the end of September, gold relinquished some of its gains in Q4 following Trump’s conciliatory acceptance speech and the FOMC’s interest rate rise.
  • 2016 saw a 7-year low for jewellery demand.bRising prices for much of the year, regulatory and fiscal hurdles in India and China’s softening economy were key reasons for weakness in the sector.
  • India’s shock demonetisation policy brought the market to a virtual standstill. An initial rush for gold following the policy announcement came to a swift halt in the ensuing cash crunch.

You may download the full report report here.

What to expect from gold in 2016

The World Gold Council just published their review of gold’s performance during 2015, examining the factors that may influence gold in 2016.

According to the World Gold Council’s report, the effect that US rates have had on the gold price is overdone and may take a back seat in 2016. Amid expensive stock valuations and high market risks, gold’s role as a portfolio diversifier and tail risk hedge is particularly relevant.

Their report is available here or at their website.

Boston Consulting Group on Exploration and Mining (current affairs and future trends)

Yes, these are hard times (although I just started a new consulting project today and will likely add another in the next week or so) but it’s time we leave the gloom and doom talking and start thinking (and acting) on ways to improve.
I always like to pick ideas from well thought, well structured texts. I have just come across some recent (2015) BCG publications (https://www.bcgperspectives.com) on the current state of affairs in Exploration and Mining:

A couple of other interesting documents are not available in pdf format but you can read them at:

Thanks to BCG for publishing these reports.