With each passing crisis, the precious metal consolidates its status as a refuge. Since the beginning of the Kovid-19 pandemic, most investment banks and asset managers have made positive forecasts for gold. In addition, they moved from words to deeds, said Laurent Schwartz, director of the National Gold Agency.
In the first three months of the year, the gold reserves of the five American financial giants increased by a total of 1.95 billion dollars. The data is available from the Securities and Exchange Commission, the US stock exchange regulator.
At the end of March, a month after the coronavirus crisis began, two banks held more than $ 2 billion in gold: the Bank of America and Morgan Stanley. “For the former, it’s not surprising, she predicts a price per ounce of $ 3,000,” said Laurent Schwartz. That’s more than 50 percent more than the all-time high of more than $ 1,900 an ounce reached in August 2011.
Gold prices have been pushed up by large-scale bailouts of central banks and governments, which threaten to devalue currencies.
For the first quarter, Blackrock is the largest asset manager in the world, having more than tripled its position: from $ 387 million as of December 31, 2019, the group’s gold assets jumped to $ 1.2 billion as of March 31.
Since January 1, oil prices have jumped 13.5 percent – on Friday, one ounce traded for 1734 dollars. According to analysts, this rise is unlikely to stop soon.