The New In Gold We Trust Report is Here!

The In Gold We Trust 2020 report by our good friends Ronald Stoeferle and Mark Valek was released last week. It is the biggest and most comprehensive gold research report in the world. As always it contains a wealth of new material, as well as the traditional wide-ranging collection of charts and data that makes it such a valuable reference work for everything of interest to gold investors or indeed for anyone interested in precious metals (a download link to the report is provided below).

Left: casting gold bars. Right: using gold as a shield against assorted slings and arrows.

Here is a brief overview of the main subjects discussed in the report:

– A review of the most important events in the gold market in recent months

– An analysis of the impact of the Covid-19 crisis on the price of gold

– The increasing importance of gold in times of de-dollarization

– Silver – ready to fly high?

– Gold and cryptocurrencies

– Gold mining stocks: The bull market has started

– Outlook for the gold price development in this decade: A gold price of around USD 4,800 suggested by our quantitative model, even with a conservative calibration of the parameters.

As an aside, yours truly has also contributed a brief chapter to this year’s report, namely the chapter on capital consumption starting on page 192.

As this year’s IGWT report is published, gold has finally clearly re-entered a bull market. Of course, with hindsight, it is obvious that a bull market was underway ever since the mid-cycle correction ended in late 2015, but it was initially a very labored, halting affair, a “stealth” bull market if you will. And while gold may not yet be at a new all-time high in US dollar terms, it has reached new highs in numerous other major currencies:

(Click on image to enlarge)

Gold priced in USD, XAD, EUR, JPY, CAD, and ZAR. The 2011 – 2015 bear market was quite severe in US dollar terms – equivalent to the size of the mid-cycle bear market from 1974 to 1976 – but in non-dollar currencies is was in many cases essentially nothing more than a shallow pullback.