Incrementum AG: In Gold We Trust Report 2021- Monetary Climate Change
SCHAAN, Liechtenstein and VIENNA, May 27, 2021 /PRNewswire/ -- On May 27, 2021, this year's In Gold We Trust report was presented at an international press conference, broadcast live on the Internet. The authors of the report are fund managers Ronald-Peter Stoeferle and Mark Valek from the Liechtenstein-based asset management firm Incrementum AG.
The 340-page In Gold We Trust report is world-renowned and has been dubbed the 'gold standard of gold studies' by the Wall Street Journal. Last year's edition was downloaded and shared more than 2 million times. This makes the In Gold We Trust report, published for the 15th time this year, one of the most widely read gold studies internationally. In addition to the German and English versions, the report has also been published in Chinese since 2019.
In Gold We Trust report 2021 – Compact Version
Live streaming or recording of the press conference
Presentation, Infographics and Press Pictures
The In Gold We Trust report 2021 focuses on these topics:
► Status quo of gold: price development over the last 12 months, important influencing factors, and trends in the gold market.
► Facets of 'monetary climate change'
- Why the current surge in inflation is not temporary
- Inflation as a risk to equity and bond markets
- Government debt reduction through 'yield curve control'
► Are commodities at the start of a new supercycle?
► De-dollarization 2021: Europe buys gold, China opens a digital front
► Analysis of a combined gold/Bitcoin investment strategy
► The silver decade
► A deep dive into the undervaluation of the mining sector
Additional chapters on the following topics:
► An interview with economic historian Russell Napier on why he has switched from the deflation camp to the inflation camp.
► On the occasion of the 50th anniversary of the "temporary" closing of the gold window, blogger "FOFOA" presents his views on the Nixon shock.
► US analyst Lyn Alden contributes a guest editorial on the long-term debt cycle.
► Robert Breedlove, one of the most respected philosophers in the Bitcoin sphere, lays out his views on gold through an exploration of the question "What is money?".
Key Messages of the In Gold We Trust report 2021
- A monetary climate change is emerging.
The term describes the multi-layered paradigm shift triggered by the pandemic and the policy responses to it. Profound changes in fiscal and monetary policy will have tangible consequences for the monetary system and ultimately for the population.
- Increased inflation rates will not pass anytime soon
At the center of Western central bank narratives on inflation dynamics is one term: that it is temporary. In our view, the current pickup in inflation rates heralds a fundamental trend reversal and we will see the introduction of "yield curve control" by central banks.
- Real interest rates will remain negative for years to come.
The market environment favors real assets. In particular, equities from selected sectors, commodities, and precious metals should have a correspondingly high weighting in a portfolio.
- Silver: main winner of both monetary and meteorological climate change?
The fundamental supply and demand situation presents itself as very solid. Many of the currently massively promoted "green" technologies require silver. A longer-term inflationary period – that we expect as a consequence of monetary climate change – could additionally provide a massive boost to the price of silver.
- Gold and silver mining stocks remain highly exciting portfolio additions.
In 2020, the gold mining industry posted its most profitable year ever. While the gold price marked new all-time highs last year, the valuation of gold mining companies does not yet reflect their sharp increase in profitability. We expect gold mining companies to generate record high cash flows in 2021 and beyond.
- Cryptocurrencies will not replace physical gold as an investment.
Due to its unique properties, physical gold will continue to play an elementary role in asset investment in the future. Nevertheless, the importance of cryptocurrencies and digital assets will increase, not least due to the monetary climate change. Portfolios with precious metals and crypto exposure can improve risk/return potential for investors.
- Technical analysis
The Coppock indicator generated a long-term buy signal for gold at the end of 2015. The long-term cup-handle formation, which could now resolve soon, appears particularly interesting. The price target of this formation is USD 2,700.
- Gold price 2030: USD 4,800; 2021 new all-time high
We are sticking to last year's forecast for the USD price of gold at the end of the decade. For our conservative base scenario, we have issued a price target of USD 4,800; in an inflationary scenario, even USD 8,900 is within the realm of possibility. Based on implied expectations in the gold options market, we see a 45% probability of gold reaching a new USD all-time high as early as December 2021.
Incrementum AG
Incrementum AG is an independent investment and asset management company based in the Principality of Liechtenstein. The company was founded in 2013. Independence and autonomy are the cornerstones of our philosophy, which is why the company is 100 percent owned by its 5 partners.
Contact:
Incrementum AG
Im alten Riet 102
FL-9494 Schaan
Liechtenstein
www.incrementum.li
www.ingoldwetrust.li
Email:
Ronald-Peter Stoeferle: rps@incrementum.li
Mark Valek: mjv@incrementum.li
Press information (photos, press release): ingoldwetrust.report/press/
Disclaimer:
This publication is for information purposes only and does not constitute investment advice, investment analysis or an invitation to buy or sell financial instruments. In particular, the document is not intended to replace individual investment or other advice. The information contained in this publication is based on the state of knowledge at the time of preparation and may be changed at any time without further notice.
The authors have taken the greatest possible care in selecting the sources of information used by them, but do not assume any liability (nor does Incrementum AG) for the accuracy, completeness or timeliness of the information or sources of information provided, or any liability or damages of any kind arising therefrom (including consequential or indirect damages, lost profits or the occurrence of forecasts made).
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