Why Gold could be 'The' asset to focus on and how to play it?

In 2021, gold hasn't done much. Its down 6% YTD. It was up a clean 20% in 2020.

What could be in store ahead. A thread 🧵 explaining drivers and way ahead.

There are 4 factors that are key to watch

1. Massive financial debasement across the world

2. Negative Real Interest rates

3. Gold's unique diversification edge

4. Incremental demand Vs limited supply

Financial debasement
US Fed's balance sheet has doubled from $4.2 trn to $8.4trn since COVID began. Similarly ECB, BOJ, BOE and EM central banks have embarked on massive monetary stimulus.

This was used to finance Govt deficit. This monetization/debasement is bullish for Gold.

Negative real rates
Gold prices follow moves in interest rates. Real interest rates are the nominal level of interest rates minus the inflation rate. Negative real rates erode the value of money. Gold being a store of value benefits from this...

Real rates are the most negative that they have been. Even junk bond yields have turned negative adjusted for inflation.
Gold moves inline with moves in real rates. With inflation still above normal trend and central banks likely to keep rates low, Gold is likely to benefit.

#GoldINR returns on 3 yr and 5 yr rolling basis in the last 14 years that also saw one of the worst bear markets of this current century.

Mind you SGBs are providing these returns tax free = taxable 2.5% interest... Overall nearly a tax free CAGR of 12.8%

Read = as+

Gold Sentiment has collapsed to the lowest since the 2018 Bottom.

Price has formed a huge 7-Month *potential* ABC Bull Flag into critical support.

Positioning has been wiped out (charts later this week).

Look for DSI to turn up soon – maybe the initial stages of a big rally.

$GOLD - Can move up to 2200+.
Invalid below 1660.
Momentum on a breakout of Orange Channel.

https://t.co/1q7f6LJpEg

Going live in 20
#Gold #DailyByte

Has anybody done a comparative study on all the Gold ETFs listed, performance and tracking error

Thanks in advance

Lot of learnings in this chart.... zoom and see each point.

#Gold

Gold which is denoted internationally by the symbol XAU/USD representing the dollar value of one ounce of gold is currently trading north of USD 1880.

Content: Pankaj Prakhar

#GOLD$1800

Monthly chart

Opportunity after decade ?

#MACD
#Probability
#Observation

$GLD Monthly 💰⛏️

GOLDSPOT/USD
#Daily

#RSI did the Initial damage!!! Will it hold this crucial Zone?

#Gold$-1763

Daily chart ...more downside likely if sustain below 1763$

#Probability

#GOLD $1877

Has already broken out of the falling trend and seems to have started a fresh leg up towards existing highs and possibly even a new high as well!

Weekly chart so this would move up gradually. Support and resistances marked on the

Better way to Invest in Gold -

The new Sovereign Gold Bond (SGB) issue opened today for subscription for 5 days from 17-21 May.

Thread on why consider SGB bonds vs physical gold this year-

1. Earn Interest:

Big Advantage - SGB offers 2.50% per annum interest. It will be credited to your bank account once every 6 months.

Physical gold sits ideal, gold bonds earn you money.

2. Safety:

Keeping gold safely is one of the major challenges that people have to face when buying gold.

However with SGB, gold is safe in a vault under Government surveillance.

Your bond can be kept in Demat format.

3. Purity:

Checking the purity while buying Physical Gold is a common problem but investing in SGB saves you from having to go through the trouble of checking purity as it is being issued by the Government and each unit you buy is backed by 99.9% pure 24-carat gold.

4. Collateral:

One of the lesser-known advantages of Sovereign Gold Bonds is that they can be hypothecated for taking loans which makes it equivalent if not better than buying physical gold.

#Gold $1865

Another retest of the trendline and

Short term top mayb ? #Gold

#GOLD - BUY THIS TREASURE!!!!!!!!! [GOLD] - TradingView -

#Gold Spot $1880

Onwards towards $2400-500

https://t.co/pa3yu2gDXk

#AnalysisOnly