Gold Set for ‘Best Return Since 1979’ as Geopolitical Tensions and Money Supply Surge

As a seasoned crypto investor with over two decades of experience navigating various market cycles and geopolitical tensions, I find myself increasingly drawn towards traditional safe-haven assets like gold, especially given the current climate of escalating global conflicts.


With global political uncertainties escalating, more and more investors are opting for secure investments such as gold. In fact, exchange-traded funds (ETFs) concentrating on gold and its mining sectors have attracted approximately $3.3 billion in investment since August.

As reported by Kobeissi Letter on social media platform X (previously known as Twitter), there have been total deposits of approximately $644 million into the most widely held gold exchange-traded fund, SPDR Gold Shares (GLD), so far this year.

Due to exceptionally high demand in recent times, gold is projected to achieve its highest annual return since 1979, currently up by approximately 28% so far this year and trading at around $2,645 per ounce. A year ago, the price of gold was only slightly over $1,800.

The news source additionally pointed out that Exchange-Traded Funds (ETFs) specializing in gold mining companies, such as the VanEck Gold Miners ETF and the VanEck Junior Gold Miners ETF, have experienced a surge of more than 30% and are on pace for their strongest performance since 2020.

Latest Update: Aggregate investments in Gold Exchange-Traded Funds (ETFs), which include those focused on mining companies, have reached a total of $3.3 billion since August.

This year, the most commonly chosen gold ETF, denoted as $GLD, has witnessed an inflow of approximately $644 million.

The increased demand for gold is pushing it towards its strongest annual return in years. The peak was last seen…

— The Kobeissi Letter (@KobeissiLetter) October 2, 2024

According to recent reports, gold appears to be behaving as if we’re experiencing an economic crisis. Remarkably, the value of this precious metal is rapidly increasing at a time when the combined money supply in the U.S., Eurozone, Japan, and China has for the first time ever surpassed $89.7 trillion, with a staggering $7.3 trillion increase over the past year.

Gold experienced an upward trend following the incident where Iran launched approximately 180 ballistic missiles towards Israel, reportedly as a response to the killings of Hamas’s political chief and an Iranian military commander.

Significantly, Societe Generale has moved all its commodity investments to gold, primarily due to heightened geopolitical concerns and a deteriorating overall commodities market.

The French bank boosted its gold reserves to make up 7% of its overall investment strategy, representing a 40% surge from the previous quarter. This shift towards gold suggests a rising faith in gold as a secure investment choice during times of market turmoil and uncertainty worldwide.

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2024-10-03 19:58