But lately, we see some pension funds starting to allocate 5% into gold. We know that 21% of global assets are pension funds, so 5% of 21% is 1%. If gold allocation increases 1%, this would double the global allocation in gold and will also double the gold price as demand doubles.
Month: August 2020
Pension funds were never fond of gold. Only a mere US$16 billion (1,81% of $US900 billion) is invested by pension funds in gold and silver. In other words, 0,032% of all pension assets are invested in precious metals.
U.S. Budget Deficit Tops 5 trillion
The U.S. has been spending like no tomorrow in Q2 2020.
The deficit to outlay ratio has ballooned to 60%. This above the threshold of 40% which means we are going to see hyperinflation in the U.S. for more info read this.
Portnoy sells bitcoin
Davey Day Trader at the Closing Bell – August 21, 2020 https://t.co/TDgMHyA9Ym— Dave Portnoy (@stoolpresidente) August 21, 2020
Small Businesses Not Reopening
Peru copper production surging
Yardeni forecasts a booming stock market
Robinhood Traders Vs. Stock Market
Robinhood traders have a very good track record in frontrunning the market as some of these examples show. When they buy, you buy. When they stop buying (flatlined) or are selling, then you sell.
Calculating the fair price of gold
To calculate the fair price of gold we assume that central banks need 20%-40% gold backing. Let’s be conservative and use 20% gold backing.
The amount of gold that central banks hold today is $1.304 trillion.
The global base money supply is around $22 trillion today. (There are people who use M1, but I’m conservative and use base money M0)
To back this money supply by 20%, we need $22 trillion x 20% = $4.4 trillion.
This means that gold will need to rise in price from $1.304 trillion to 4.4 trillion.
Or 4.4/1.304 = 3.4 times.
This gives a fair gold price of 3.4 * $2000/ounce = $6800/ounce
Warren Buffett Buys Barrick Gold
Warren Buffett is endorsing the gold sector with his new holding in Barrick Gold, while selling U.S. banks.
Sprott Inc. Miners Update
Sprott Inc. filed their new report on holdings.
This is the result.
This is the result.
Stock | old | new | change | x1000 |
SPDR SERIES TRUST | 16,081 | 202500 | 186,419 | |
SILVERCREST METALS INC | 22,154 | 77752 | 55,598 | |
B2GOLD CORP | 10,900 | 66283 | 55,383 | |
INTERNATIONAL TOWER HILL MINES | 11,819 | 51629 | 39,810 | |
ROYAL GOLD INC | 2,689 | 39177 | 36,488 | |
PAN AMERICAN SILVER CORP | 85,052 | 115923 | 30,871 | |
NOVAGOLD RES INC | 28,643 | 28,643 | ||
SSR MNG INC | 5,179 | 24716 | 19,537 | |
KINROSS GOLD CORP | 44,161 | 63419 | 19,258 | |
MAVERIX METALS INC | 11,007 | 25381 | 14,374 | |
NEWMONT GOLDCORP CORPORATION | 48,530 | 62392 | 13,862 | |
SANDSTORM GOLD LTD | 13,643 | 26638 | 12,995 | |
ALAMOS GOLD INC CL A | 52,717 | 65293 | 12,576 | |
COEUR MNG INC | 11,475 | 11,475 | ||
GOLD FIELDS LTD NEW | 51,642 | 62611 | 10,969 | |
OSISKO GOLD ROYALTIES LTD | 35,313 | 44742 | 9,429 | |
FORTUNA SILVER MINES INC | 9,880 | 17324 | 7,444 | |
SEABRIDGE GOLD INC | 6,311 | 12951 | 6,640 | |
HECLA MNG CO | 1,792 | 7655 | 5,863 | |
YAMANA GOLD INC | 460 | 6011 | 5,551 | |
BARRICK GOLD CORPORATION | 43,755 | 49229 | 5,474 | |
SIBANYE STILLWATER LTD | 1,213 | 6495 | 5,282 | |
HARMONY GOLD MINING CO LTD | 3,796 | 3,796 | ||
EQUINOX GOLD CORP | 2,113 | 5334 | 3,221 | |
ARTISAN PARTNERS ASSET MGMT CL A | 6,017 | 9100 | 3,083 | |
KENNEDY-WILSON HLDGS INC | 6,707 | 9152 | 2,445 | |
FEDERATED HERMES INC | 4,762 | 7110 | 2,348 | |
EMX RTY CORP | 3,006 | 4826 | 1,820 | |
FRANKLIN RES INC | 6,342 | 7969 | 1,627 | |
HELMERICH & PAYNE INC | 6,285 | 7820 | 1,535 | |
WESTLAKE CHEM CORP | 7,634 | 9120 | 1,486 | |
AMERICAS GOLD AND SILVER CORP | 2,127 | 3519 | 1,392 | |
NEXGEN ENERGY LTD | 725 | 2102 | 1,377 | |
WESTERN DIGITAL CORP | 7,283 | 8609 | 1,326 | |
ALMADEN MINERALS LTD CL B | 1,946 | 3024 | 1,078 | |
SILVERCORP METALS INC | 1,369 | 2162 | 793 | |
RELIANCE STEEL & ALUMINUM CO | 7,007 | 7594 | 587 | |
VANECK VECTORS ETF TR GOLD MINERS | 1,386 | 1973 | 587 | |
ELDORADO GOLD CORP NEW | 1,124 | 1681 | 557 | |
FRP HLDGS INC | 3,225 | 3652 | 427 | |
VANGUARD SCOTTSDALE FDS | 3,751 | 4174 | 423 | |
BUCKLE INC | 3,976 | 4390 | 414 | |
SPROTT PHYSICAL GOLD & SILVER | 667 | 1068 | 401 | |
TEXAS PAC LD TR | 398 | 398 | ||
TRILOGY METALS INC NEW | 574 | 958 | 384 | |
ALEXCO RESOURCE CORP | 445 | 811 | 366 | |
PLATINUM GROUP METALS LTD | 2,735 | 3073 | 338 | |
SPROTT PHYSICAL SILVER TRUST | 559 | 886 | 327 | |
TECK RESOURCES LTD | 308 | 308 | ||
NEW GOLD INC CDA | 118 | 410 | 292 | |
ARCOSA INC | 4,371 | 4642 | 271 | |
SPROTT PHYSICAL GOLD TRUST | 1,331 | 1578 | 247 | |
ISHARES SILVER TRUST | 502 | 733 | 231 | |
SANDERSON FARMS INC | 6,166 | 6374 | 208 | |
MARCUS & MILLICHAP INC | 2,981 | 3175 | 194 | |
URANIUM ENERGY CORP | 333 | 522 | 189 | |
ATLAS CORP | 177 | 177 | ||
GENTEX CORP | 2,438 | 2577 | 139 | |
TURQUOISE HILL RES LTD | 73 | 202 | 129 | |
ISHARES GOLD TRUST | 395 | 508 | 113 | |
AMAZON COM INC | 234 | 331 | 97 | |
NUTRIEN LTD | 254 | 344 | 90 | |
AVINO SILVER & GOLD MINES LT | 673 | 756 | 83 | |
AURYN RES INC | 85 | 166 | 81 | |
DENISON MINES CORP | 408 | 485 | 77 | |
CORTEVA INC | 249 | 324 | 75 | |
INDUSTRIAS BACHOCO SAB DE SPON ADR | 2,393 | 2462 | 69 | |
CAL MAINE FOODS INC | 5,717 | 5782 | 65 | |
GALIANO GOLD INC | 53 | 53 | ||
SPROTT FOCUS TR INC | 121 | 142 | 21 | |
GRAFTECH INTL LTD | 241 | 251 | 10 | |
SMART SAND INC | 1,040 | 1050 | 10 | |
CAMECO CORP | 431 | 390 | -41 | |
ISHARES TR | 460 | 387 | -73 | |
THOR INDS INC | 2,742 | 2663 | -79 | |
FREEPORT-MCMORAN INC CL B | 302 | 117 | -185 | |
BERKSHIRE HATHAWAY INC CL B | 8,281 | 8085 | -196 | |
METALLA RTY & STREAMING LTD | 518 | 306 | -212 | |
LAM RESEARCH CORP | 3,600 | 3235 | -365 | |
MAG SILVER CORP | 70,760 | 70141 | -619 | |
CIRRUS LOGIC INC | 4,266 | 3397 | -869 | |
BIOGEN INC | 9,491 | 8561 | -930 | |
FIRST MAJESTIC SILVER CORP | 4,813 | 3773 | -1,040 | |
GOLD STD VENTURES CORP | 3,662 | 2499 | -1,163 | |
APPLE INC | 1,426 | 222 | -1,204 | |
GOLDEN STAR RES LTD CDA | 2,964 | 503 | -2,461 | |
KIRKLAND LAKE GOLD LTD | 72,657 | 69349 | -3,308 | |
EXXON MOBIL CORP | 4,981 | 126 | -4,855 | |
AGNICO EAGLE MINES LTD | 48,564 | 29297 | -19,267 | |
ANGLOGOLD ASHANTI LTD | 49,675 | 30109 | -19,566 | |
WHEATON PRECIOUS METALS CORP | 106,239 | 84605 | -21,634 | |
FRANCO NEVADA CORP | 88,467 | 61828 | -26,639 | |
AMGEN INC | 3,041 | #N/A | #N/A | |
BLACKSTONE MTG TR INC | 190 | #N/A | #N/A | |
COMPANIA DE MINAS BUENAVENTU | 2,539 | #N/A | #N/A | |
GARMIN LTD | 375 | #N/A | #N/A | |
GOLD RESOURCE CORP | 1,510 | #N/A | #N/A | |
GREAT PANTHER MINING LIMITED | 672 | #N/A | #N/A | |
IAMGOLD CORP | 6,698 | #N/A | #N/A | |
ICAD INC | 89 | #N/A | #N/A | |
MCEWEN MNG INC | 352 | #N/A | #N/A | |
NORTHERN DYNASTY MINERALS LT | 10 | #N/A | #N/A | |
POWERSHARES DB MULTI-SECTOR | 193 | #N/A | #N/A | |
SELECT SECTOR SPDR TR | 306 | #N/A | #N/A | |
SPDR GOLD TRUST | 1,591 | #N/A | #N/A | |
SPROTT ETF TRUST | 236 | #N/A | #N/A | |
SPROTT PHYSICAL PLAT PALLADIUM | 454 | #N/A | #N/A | |
STAR BULK CARRIERS CORP. | 350 | #N/A | #N/A | |
TRANSOCEAN LTD | 15 | #N/A | #N/A |