Analytics

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.

In May, gold and silver prices rose significantly, which was facilitated by several factors, namely, the fall in the US dollar index, a decrease in bond yields and a collapse in the value of cryptocurrencies.

According to Bloomberg, yellow metal is one of the most profitable assets in 2020. For the first time in history, his rate exceeded the mark of $2,000 per ounce. The yield on the asset reached 25.1% for the year, becoming the highest in the last decade.

Consider the statistics of the two leading mints in the world - Perth (Australia) and American.