Ann: Mines and Wines Tomingley Presentation, page-39

Is the appetite for investing in gold going to increase?

Interesting article in SMH today including a chart showing volatility of assets in the last 11 years sourced from Bloomberg. It shows $US at 6.7%, commodities 13.4%, S&P at 16.8% and Gold at 15.3% while Bitcoin is a whopping 95.9%. Crypto are very high risk compared to these other assets and it seems many people have lost a lot of money ‘gambling’ on them as the so called inventor of Bitcoin strongly implies in an article in AFR today, who also believes they are doomed to fail (not convinced of that view).

Lots of recent articles noting how cryptos are highly correlated with US share prices especially NASDAQ where cryptos have fallen twice as much as the NASDQ ‘s approx 30% fall.

Given the recently downward moves in crypto prices it will be very interesting to see if there is a move to owning more gold - at this stage I am sitting on the fence but if central banks can’t control inflation then I expect POG to increase but by how much I do not know.