Syz the moment

This ratio has doubled in 10 years and quadrupled since 2001. Nominally, gold’s market value sits near an all-time high of ~$18.5 trillion. This comes as gold as posted an average annual return of +9.5% since 2000, making it one of the best performing major asset classes this century. Since the start of 2024, gold prices have hit 41 all-time highs and are up +33%. Source: The Kobeissi Letter

Source: Bloomberg

gold (in black) vs. bitcoin (in orange) etf inflows per year since launch. Source: Bitwise

Source: Wolfstreet.com

Source: Bloomberg, The Methodical Investor

🚨 "The gold price appreciation over the past year has gone well beyond the moves implied by dollar and real bond yield shifts, and likely reflects the re-emergence of this 'debasement trade,'" JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Friday. Meanwhile, a record capital inflow into crypto markets in 2024 suggests that bitcoin is also becoming "a more important component" of investors' portfolios, they added. 👉 The debasement trade refers to a strategy where investors turn to assets like gold and bitcoin to hedge against the devaluation of fiat currencies, often driven by factors such as inflation, rising government debt and geopolitical instability. 🔴 Overall, with both gold and bitcoin gaining structural importance, the debasement trade is here to stay, according to the analysts. Last October, the analysts expressed bullishness on crypto heading into 2025, citing factors such as the debasement trade and growing institutional adoption, among others. Source: The Block Disclaimer: These are not investment recommendations. Cryptoasset investments can be complex and high risk.

Source: Goldman Sachs, Win Smart, CFA @WinfieldSmart

👉According to the Goldman Sachs nowcast of central bank and other institutional gold buying on the London OTC market, October saw central banks buy a whopping 64 tonnes in October (vs. pre-2022 average of 17 tonnes), with China once again the largest buyer adding 55 tonnes, which is striking since the official number reported by the PBOC was one-tenth that, or just 5 tonnes. In other words, China is secretly buying up ~10x more gold than it admits. 👉Commenting on the surge in purchases, the Goldman analyst writes that "surveys and history suggest that EM central banks buy gold as a hedge against financial and geopolitical shocks" and adds that "central bank purchases will remain elevated because fears about geopolitical shocks have structurally risen since the freezing of Russian reserves in 2022, and because relatively low gold shares in EM central banks reserves vs. DMs leaves room for growth." In fact, 81% of the central banks surveyed by the World Gold Council expect global central bank gold holdings to rise over the next 12 months, with none anticipating a decline. 🚨 As shown on the chart below, what is far more striking is the staggering (and growing) divergence between the modest amounts of gold purchases reported by the hashtag#PBOC and the far greater amount China has actually purchased on the London OTC market, in a clear attempt to mask its staggering demand for the precious metal, and be extension, its diversification away from the dollar... Source; www.zerohedge.com