Tag Archives: central banks

Japan’s post-1989 experience provides a long-running case study on the limits of monetary and fiscal stimulus. After the collapse of a combined equity and property bubble, Japan relied on sustained deficits, near-zero interest rates, and repeated stimulus to stabilize growth. While markets eventually recovered in nominal terms, the process took decades and coincided with a sharp rise in government debt. In 2026, rising bond yields and higher debt servicing costs are testing the durability of this approach. The Japanese experience offers a relevant framework for assessing similar policy paths now being followed globally.

Gold’s rise to over $4,500/oz in 2025 reflects deep structural imbalances in global currency management. As inflation erodes purchasing power, gold’s share of global financial assets has begun to recover from historic lows. Central banks, particularly in emerging markets, are diversifying away from the U.S. dollar and increasing gold holdings. The U.S. government’s long-standing influence through major financial institutions is weakening as AI-driven trading and geopolitical shifts reshape the market. The reassertion of the physical gold market marks a turning point for investors evaluating the future of monetary stability.

The World Gold Council’s Q2 2025 Gold Demand Trends report shows global demand rose 3% year-over-year to 1,249 tonnes, driven by record investment flows. ETFs gained 170 tonnes and bar and coin demand reached 307 tonnes, led by China and India. Central banks added 166 tonnes, a slowdown but still above historical averages. Jewellery demand fell 14% to 341 tonnes, the lowest since 2020, while spending rose 21% to $36 billion. Technology demand slipped 2%, and supply hit a Q2 record with 909 tonnes of mine output. Recycling rose modestly, and de-hedging continued for a sixth quarter.

Gold recently surpassed $3,500/oz, attracting investors looking for protection from economic uncertainty and global instability. With rising sovereign debt and reduced confidence in fiat currencies, analysts see potential for gold to reach $10,000 to $25,000 per ounce. Central bank accumulation, underinvestment in mining, and geopolitical risks add to the bullish case. Investment strategies include physical gold, mining stocks, and ETFs such as GDX and GDXJ. Companies like Barrick Gold, New Gold, and Lake Victoria Gold are noted for their positioning. The article outlines why gold may become a key investment theme heading into 2025.

The World Gold Council released its “Gold Demand Trends” report for Q1/2025. Gold demand reached 1,206 tonnes in Q1/2025, a modest 1% rise year-over-year, marking the strongest first quarter since 2016. Investment demand drove the increase, with ETF inflows totaling 226 tonnes and overall investment reaching 552 tonnes, up 170% y/y. Jewellery demand dropped 21% to 380 tonnes, hit by record gold prices. Central bank purchases slowed slightly but remained steady at 244 tonnes. Mine production hit a Q1 record, while recycling dipped. Regional dynamics were mixed, with China and India leading investment demand. The outlook remains uncertain, with economic and geopolitical risks continuing to shape demand patterns across segments.

Gold’s long-term trend has been shaped by inflation, monetary policy, and global economic shifts. Since 2016, the metal has been in a renewed uptrend, surpassing its previous highs. Historical cycles show that when gold moves, it moves fast. With gold now above its inflation-adjusted highs of $2,700, a sustained breakout above $3,000 could signal the next phase of its rally. Technical levels suggest that once gold clears key resistance zones, $4,000 may be the next significant target. This article examines gold’s historical patterns and key price levels, offering insights into what may be ahead for the precious metal.

Swings in the US dollar have no long-term impact in the price of gold and gold isn't an inflation hedge either so what is it then? Read on!

Dear reader, I was afforded a most extraordinary experience recently that has given me unique insight into our global financial and political systems. I intend to share my experience with you. However, I caution you, that the information I gleaned from this experience will be disturbing. What you are about to read will forever change your view of banking, politics, economics and money. Read on, if you dare.

Believe it or not, the keynote speaker at the recent International Economic Symposium was none other than the straight talking Gustavo Laframboise-Pierre, Global Director of Statistical Creation at the European Central Bank. What he had to say goes a long way in explaining how the word ‘truth’ has become nothing more than a hollow collection of 5 letters with no meaning.

Before you read the following excerpt from the notional ‘conclusions’ of the 2014 WEF – the supposedly profound and brilliant summary of the thoughts of these greatest minds - I suggest you: 1.drink several espressos to help keep you awake as you read and 2.have some of your favorite remedy for an upset stomach to calm your queasy innards after you finish reading the excerpt as its leaders, in fact, have not a clue as to how to guide us through the morass that is the global economy will leave you quite dizzy.