Analytics

In July, precious metal quotes increased. The main reason is a decrease in the yield of the US Treasurers amid investor concern about the pace of economic recovery and the rapid spread of a strain of coronavirus called Delta.

There are a large number of mints in the world. They are private and public. There are so many of them that one article is not enough to tell about everyone. They mainly mint coins, and some modern mints produce bullion and tokens.

The Royal Mint of Canada reports high demand for gold and silver investment products for the first quarter of this year. Some customers buy precious metals due to concerns about higher inflation, others - in order to diversify the portfolio and reduce risks.

The European Central Bank is ready to allow inflation targets to exceed. The European Union is adapting the approach that the US Federal Reserve has adopted. However, the ECB went even further. Bank executives agreed to raise the inflation target to 2%.

During the pandemic period, the number of Indian citizens who sell yellow metal products increased sharply. This trend is related to the deterioration of the economic well-being of Indian families due to unemployment or reduced wages. The proceeds from the sale are used to pay for hospitalization and school fees, rental of housing or retail space. The gold reserve is spent as intended in conditions of instability.

During the first 6 months of 2021, the yellow metal exchange rate showed a fairly stable dynamics due to inflationary expectations and the Fed's soft monetary policy. Precious metal quotes kept the weak dollar and economic stimulus packages high.

The US gold coin Double Eagle of 1933 sold for $18.4 million! Bidding took place at the Sotheby's auction in New York. Now it is the most expensive coin in the world ever sold.

Central banks are net buyers of yellow metal for 11 consecutive years. According to the World Gold Council, in 2020 the volume of the world gold reserve was replenished by 272.9 tons of bullion. During the active phase of the pandemic, some banks sold their reserves and poured liquidity into the economy.

Discussions are still under way on how the entry into force of the third Basel Agreement ("Basel III") will affect the gold market. In addition to changing the requirements for bank capital, Basel III contains two completely new conditions for the liquidity of bank assets: a net stable financing ratio and a liquidity coverage ratio.

According to Bloomberg Intelligence, the yellow metal exchange rate is resuming an upward trend, as evidenced by the lag behind crude oil quotes.