Commodities Monthly - Gold sentiment around the globe
- In depth discussions with 60 investors around Europe, Asia and the Middle East as well as field research confirmed that this precious metal bull market has significant room to accelerate. Yet, motivations differ.
- European investors are concerned about higher intraday volatility and bubble-formation, but remain confident on the investment thesis. Playing gold via gold miners is heavily re-considered.
- Middle Eastern investors have been busy with the better-yielding alternatives offered by their domestic fixed income and equity markets. However, the need to protect against USD debasement bodes well for future demand.
- Retail participation channels in Asia are open – e.g., via Gold accumulation plans or Gold bars – but penetration rates are still at their infancy, indicating further room for growth.
- Institutional investor participation in Asia is largely constrained by developing local regulation which – once resolved – should open a new wave of physical demand for precious metals.