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Gold buying by central banks is underreported

In recent weeks, the world has witnessed a spike in the price of gold, catapulting the yellow metal to an all-time high. While much attention has been given to China’s voracious appetite for gold, there’s a significant factor flying under the radar: the substantial buying spree by central banks, largely unreported but undeniably impactful.

The surge in gold prices can be traced back to a series of events, notably China’s aggressive accumulation of gold reserves, which was first identified as far back as December 2022. However, it’s not just China’s demand that’s fueling the gold rush; central banks worldwide are increasingly turning to gold as a hedge against geopolitical and financial uncertainty.

You can read more on the matter here.

What’s going on?

• Tariffs Are Coming For Critical Minerals In US (theDeepDive)

• Powell says inflation has been higher than thought and expects rates to hold steady (CNBC)

• Is No One Buying Condos in Toronto Anymore? Q1 Sales Down, Developers Get Desperate (theDeepDive)

• Philippines seeking Canada’s help to avoid ‘great power rivalry’ between China, U.S. (Globe)

• Statistics Canada reports wholesale sales down 1.1% in March (BNN)

• Orbán Welcomes Xi: Chinese Police to Be Deployed in Hungary (theDeepDive)

• Poland Forced to Rethink Cheap Mortgage Plan in a Housing Boom (Bloomberg)

• Marc Miller Announces Plan to Reduce Temporary Residents.. By Making Them Permanent (theDeepDive)

• Walmart to Lay Off and Relocate Workers (WSJ)

• Gold Buying by Central Banks Goes Underreported, Driving Surge in Prices (theDeepDive)

What’s the latest?

• BHP Rejected: Canada's wholesale sales, excluding petroleum and related products, decreased by 1.1% to $81.4 billion in March, with declines in three of the seven tracked subsectors. In volume terms, sales fell by 1.2%.

• Anglo Break Up: Anglo American Plc will exit diamond, platinum, and coal mining in a major restructuring to fend off a £34 billion (US$43 billion) bid from BHP Group, aiming to become a copper-focused company. The plan includes selling De Beers, Anglo American Platinum Ltd., and its coking coal mines, while significantly cutting spending on the Woodsmith fertilizer project.

• GME Continues: Meme-stock traders again surged into GameStop Corp. and AMC Entertainment Holdings Inc., driving GameStop's premarket stock up 120% and AMC's up 110% on Tuesday. The rally, ignited by Keith Gill's return to social media, followed Monday's gains of over 70% for both stocks, which saw the highest options volume since July 2022.

• O&G Funding: Canadian banks provided nearly US$104 billion in fossil fuel funding last year, with RBC contributing US$28.2 billion and Scotiabank US$24 billion, placing them 7th and 10th globally, respectively, according to the Banking on Climate Chaos report. The top 60 banks committed a total of US$708 billion.

• Auto Theft Solution: Premier Doug Ford's government in Ontario plans to combat rising auto theft rates by introducing legislation to suspend the driving licenses of convicted auto thieves. The proposed penalties include a 10-year suspension for the first offense, 15 years for the second, and a lifetime suspension for the third, particularly when aggravating factors like violence or organized crime are involved.

Tectonic Metals’ exploration strategy

The stock market and stuff

• Roaring Kitty Makes a Comeback — But Did He Really? (theDeepDive)

• Alibaba Falters Again While Tencent Builds on Its Recovery (Bloomberg)

• Fat Brands confidentially files to IPO Twin Peaks, Smokey Bones brands days after federal indictment (CNBC)

• Anglo Goes for Bold Breakup Plan in Move to Fend Off BHP (Bloomberg)

In the juniors

• Golden Cariboo Mobilizes Field Crew For Surface Mapping And Prospecting (theDeepDive)

• Intrepid Metals Hits 0.56% Copper Over 198 Metres (theDeepDive)

• Elevation Gold Posts AISC Of $2,437 Per Gold Ounce In Q1 (theDeepDive)

FULL DISCLOSURE: Alaska Energy Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Alaska Energy Metals. The author has been compensated to cover Alaska Energy Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.