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BlackRock/Wei Li/May 2020
“While gold supply has fallen, investment demand for gold has spiked. Investors allocated $14.8B to gold ETPs in Q1 2020 –the largest quarter for inflows since records began in 2011. April was the largest single month on record for gold ETP inflows, with investors adding a further $9.2B, and 2019 was the tenth successive year of net positive purchases of gold by central banks. This demand has helped offset some of gold’s Q1 losses in the jewellery and technology sectors due to industry stoppages. We expect demand from investors and central banks to remain strong over 2020; combined with short-term supply pressures, this could make gold increasingly attractive.”
USAGOLD note: BlackRock is seen as the new Goldman in the sense that it is the dominating presence in the financial markets these days. What they have to say about gold, therefore, is worth noting. Like Goldman, BlackRock is positive on gold saying it sees “structural tailwinds that could boost gold.” Anyone who has purchased gold over the last few years will attest to the tailwinds pushing the metal. BlackRock holds out the prospect that there is more to come.