"Everything new is just long-forgotten old," as the saying goes…
At the end of 2011, we at Rosenergobank were shocked by the decision of ECB Chairman Mario Draghi to launch the first quantitative easing in the eurozone. Its scale and the then economic situation in Europe left no doubt that the wave of newly printed money would lead to a massive devaluation of assets in real terms.
What to do? — we asked ourselves in anguish and finally realized — gold! What else could save us from the flood of paper and preserve the real value of assets? Of course, it was gold! (Cryptocurrencies simply didn't exist yet.) Does this sound familiar?
We began to expand our vaults and expected a huge influx of clients wishing to buy physical gold and preserve the value of their assets. The bank itself was also in a "long position" in the metal. And indeed, prices went up, and for some time in 2012 inspired optimism. Everyone was saying that QE3 from the Fed would finally drown everyone in paper money and gold would shine like never before!
However, almost immediately after the announcement of QE3 by the Fed, news came from the market about falling demand for gold — first in India, and then around the world. The price collapsed and could not recover for many years…
Of course! "Buy on expectations, sell on facts" — that's the principle. As it became clear later…
Today we hear:
In general, according to the prevailing opinion, gold will win in any case — it doesn't matter what happens with rates, the economy, or politics — the main thing is to buy a lot of the yellow metal. A narrative that begins to resemble a mass disease.
However, look at the chart of open positions — and you will see that in reality the interest in gold is not growing, while the price is detached from interest as never before in history.
Are you still absolutely sure that now is the time to buy gold?