There is a .0001% chance that within one calendar year, the energy grid will go down for an extended period of time (say, a few weeks) because of sabotage, solar flares, geomagnetic field disturbance, or just plain old Satan. If that happens, I think CL demand will rise a good deal. Otherwise, I stare at the small energy portion of my portfolio and whimper. Hehe! Dividends? Whoopdie f-ing do.
If you're trading then Gold is just a number that goes up and down. It's a pretty good speculation vehicle regardless of whether it's a hedge or not against this and that. Many Gold traders in 2020 have made out like bandits. Fantastic moves both ways.. PS. It's unproven but some say having a One Ounce Gold coin on your desk increases overall trading profits...
Instead of trading gold, why not just buy some and hold it. In 20 years time, your dollars are almost guaranteed to lose 90% of their purchasing power. Do you think gold will lose 90% of its purchasing power?
Guess you missed this part:- "Putting things in a bit of perspective, Q3's sales come following record purchases by central banks in 2018 and 2019."
What several seemingly astute macro analysts have said in the past year: Gold is a hedge against negative real rates Gold is not a reliable hedge to equity market risk Gold appreciation comes during relatively short, high momo moves separated by long periods of hard-to-trade chop Related: During the periods/moments of the greatest stress on the entire financial system, the correlation of all assets approaches 1, including gold; On margin calls, the over-leveraged get out of everything, including gold Thus trading gold short-term is esp difficult Also related, per Real Vision founder Raoul Pal: when bonds have near-zero rates, their volatility increases, and their reliability as a hedge to equity markets is much reduced. Look at the TLT chart from March during the worst of the equity meltdown.
Yea, so what is the point of that? Record purchases the two previous years and price went .... up. Not 20 years ago. Last year and the one before.