'Gold has a marketing problem' - Incrementum's Ronald-Peter Stöferle
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(Kitco News) - The West is losing control of the gold price and that central bank buying is the main price driver right now, according to Ronald-Peter Stöferle, fund manager & researcher at Incrementum AG,
Stöferle spoke to Kitco in mid-September at the Precious Metals Summit 2023 held in Beaver Creek, Colorado.
"In 2022, we've seen the largest central bank buying in history, and in the first half of 2023, we actually saw, I think, the highest number of purchases in the last 20 years, so central bank demand has really become a very important driver for the gold market," said Stöferle, noting purchases from China, Russia, Arab countries, Singapore, and former Eastern bloc nations such as Poland and Hungary.
Gold takes on a greater importance in non-Western countries. Over the last 20 years, the world's top two gold consumers, China and India, imported 35,000 tonnes. China is also the largest gold producer.
Responding to gold price criticism, Stöferle noted the price has done remarkably well, rising from about $1,650 a year ago to the current ~$1,900/oz. Gold generally thrives when real interest rates turn negative. Stöferle said it's surprising that gold is holding up so well, given that real rates are currently at +2%.
"That's an impressive sign of strength, so that makes me very, very confident," he said.
Kitco Mining's coverage of the Precious Metals Summit 2023 was sponsored by Newcore Gold.
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