Total Gold Supply Forecasted To Climb To 131.2 Million Ounces In 2021 Along With Increasing Mine Production
FinancialNewsMedia.com News Commentary
PALM BEACH, Fla, April 15, 2021 /PRNewswire/ -- Experts are saying that after a record year, gold is bound to see more gains in the medium and long-term. Gold performed well in the pandemic. The biggest drivers that will support gold as the world reopens include sovereign and private sector debts, deficits, and ultra-loose monetary policies. Governments around the world will struggle to reverse the fiscal policies introduced as a response to the pandemic, said the CPM Group, citing lackluster economic growth in coming years. In an article by Kitco News, discussing CPM's Gold Yearbook, said that: "The pandemic has changed the world, making some of the existing problems even worse and setting gold up to benefit… While the pandemic will eventually pass, it has left the world changed and has in fact compounded and worsened some of the factors that are supportive of gold prices," the CPM Group said. This scenario positions gold well for further gains in the medium to long term," the Yearbook stated. "The pandemic has deepened these problems and will make it harder to reverse some of these issues, which will help to keep investors interested in the metal." Active stocks in the mining markets this week include Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Rio Tinto Group (NYSE: RIO), Hecla Mining Company (NYSE: HL), Kinross Gold Corporation (NYSE: KGC) (TSX: K).
The stock market is forecasted to keep climbing despite looking top heavy. "The returns from these markets may not be as attractive as those seen over the past couple of years. A combination of top-heavy equity markets and low yields on debt make gold an attractive portfolio diversifier," the CPM Group said. The use of gold as a portfolio diversifier is expected to grow this year, which should help the prices move higher. Central banks are projected to remain net buyers of gold in 2021, with about seven million ounces estimated to be bought. "Many central banks, especially in developing countries, continue to want to diversify their assets away from the U.S. dollar and euro and are likely to continue adding to their holdings in the foreseeable future," the Yearbook said.
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