The Weekly Beacon – February 3, 2023

Click here for the PDF: The Weekly Beacon – February 3 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.

This weeks issue: SNAP earnings, Earnings season, Social media stocks, Hindenburg Research, Indian equities, Indian conglomerate, Adani Group stock, Short seller, Gold Stocks, Gold prices, Central Banks, Reserve currencies, Mining sector, Mortgage payments, Canadian real estate, Interest rates in Canada, U.S. housing market, Silicon Valley housing, Miami housing, Canadian real estate investor, General Motors, Car sales, Electric vehicles, Lithium stocks, Lithium Americas stock, Chinese solar production, Solar manufacturing by country, Chinese dominance, CCP.

 

Governments all in on one asset

Global Central Banks dove heavily back into gold. Central Banks have been net purchasers of gold since 2010 but that has accelerated over the last year to the highest point since 1967. Governments have piled in due to the lack of counterparty risk. Other currencies have counterparty risk when used as a reserve asset, gold does not.

Central bank purchases of gold have provided the spot price of gold with a nice tailwind pushing its price up since November’s bottom. The end-of-year rally for gold essentially allowed gold to trade flat through 2022. Demand among retail investors for bars and coins also jumped to a nine-year high in 2022 above 1,200 tonnes with strong demand in Europe, Turkey, and the Middle East.

Gold’s spot price throughout the last year:

Click here to continue reading: The Weekly Beacon – February 3 2023