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22 Jun, 8 tweets, 5 min read
Looking to get up to speed on changes taking place in the global economy and the impact they will have on #gold?

Drawing on content from our #IGWT report–including contributions from @Breedlove22 and Russell Napier–the five threads below are a good place to start.👇🧵
1/ Our report tackles the economic status quo and explains why "monetary climate change" is on its way.

This thread outlines gold’s performance over the past year, explains how this relates to macroeconomic trends, and gives our forecasts for the future.

2/ Structural economic changes are taking place around the world, and these changes make higher inflation more likely.

Russell Napier has been a deflationist for decades. He now sees inflation ahead… but not for the reasons you might expect.

3/ Since 1990 the value of exported goods has risen from 15% to 25% of global GDP as the world has globalized.

China, buoyed by favorable demographics, has played a huge role in supporting growth in trade, but things are now starting to change...
4/ A chapter by guest author @Breedlove22 takes a step back to ask the question “What is Money?”

This thread gives an overview of some of Robert’s key insights, but the chapter itself is a must-read.
5/ Given the price of gold, inflationary macroeconomic trends, and healthy balance sheets within the industry, we see gold mining stocks as highly undervalued.

This thread, drawing on multiple data sources, explains why.

These five threads give you a flavor of what to expect from our 2021 #IGWT report.

Much more, including analysis by @lynaldencontact, FOFOA and Hans Hansen, can be found inside.

Download for free here: bit.ly/3fpQEeT

Thanks for reading— @RonStoeferle & @MarkValek
If you found the insights shared in this thread valuable, please help us reach a wider audience by retweeting the first tweet.

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More from @IGWTreport

In Gold We Trust Profile picture
29 May
We see some incredible opportunities in the gold mining sector in the years ahead.

Our newly published 2021 In Gold We Trust report devotes a chapter – Golden Opportunities in Mining – to this topic: bit.ly/3fpQEeT

This thread summarizes some of its key insights.👇 Image
1/ 2020 saw a great improvement in the financial position of gold and silver miners.

In 2020, producers had their most profitable year ever.

The average gold spot price increased to USD 1,770/oz., but average industry AISC – representing the cost of mining – remained flat.👇 Image
2/ Undervaluations went largely unnoticed as investors focussed on cryptocurrencies, SPACS, Reddit-induced squeezes and FAANG stocks.

We can see this lack of focus in the fact that Dogecoin – a satirical homage to Bitcoin – has a higher mkt cap than some major mining companies. Image
Read 8 tweets
In Gold We Trust Profile picture
28 May
Demographic trends will have a profound effect on the global economy in the decade ahead.

We expect ageing of the world's population to put upward pressure on inflation.

Our new #IGWT21 report dedicates a chapter to this topic: bit.ly/3fpQEeT

Here's a brief summary👇 Image
1/ Since in the 1980s the world has experienced a “demographic dividend”.

A young population and growing workforce boosted growth and helped to keep inflation low.

But that dividend is now turning into a deficit as the global dependency ratio begins to rise again. Image
2/ From 1991>2018, the opening-up of China and Eastern Europe effectively doubled the labor supply available to advanced economies.

The value of exported goods as a share of global GDP jumped by 70%.

The efficiencies brought about by intl trade helped to keep inflation low. Image
Read 7 tweets
In Gold We Trust Profile picture
27 May
What is Money?

A chapter of our 2021 #IGWT report – by guest author @Breedlove22 – explores this question.

This thread gives you a flavor of what to expect from Robert's masterfully written chapter, which you can read in full here: bit.ly/3fpQEeT

#IGWT21
1/ Money is first and foremost a medium of exchange.

Humans can produce more through cooperation than in isolation, and money serves as humanity’s connective tissue, facilitating universal exchange.

The functionality of free markets is only possible with money.
2/ Money is also the most marketable good.

The demand for every economic good is split between utility and marketability.

The greater the marketability of a good, the more “moneyness” it exhibits by being more exchangeable or liquid in the marketplace.
Read 9 tweets
In Gold We Trust Profile picture
27 May
Our #IGWT 2021 report is out today!

Chapter One gives an overview of #gold in the context of the economic status quo.

How has gold performed? How has it been affected by macroeconomic trends? What are our forecasts?

This thread provides a summary👇

bit.ly/3fpQEeT
1/ Over the past 12 months, #gold has reached new all-time highs in almost all currencies.

With a gain of 24.6%, gold’s performance in 2020 was stellar in US dollar terms.

It was weaker in euro terms at 14.3%, but still well into double digits.
2/ At the same time the global macroeconomic situation has worsened.

The Covid-19 pandemic added about $24trn to the global debt mountain last year.

It has now reached a record level of $281trn, and the global debt-to-GDP ratio now exceeds 355%.
Read 10 tweets
In Gold We Trust Profile picture
18 Mar
Financial historian Russell Napier has been forecasting deflation for decades, but recent events have caused him to change his mind.

He now predicts a sustained period of higher inflation.

This thread, drawing on his recent interview with @RonStoeferle & @JilNik, explains why👇
1/ Recent debate on inflation has focussed on the impact of short-term phenomena such as the US stimulus package and economic contraction due to COVID.

But Russell sees more important changes taking place beneath the surface.

These changes are not cyclical, but structural.
2/ The impact of demographics and technology are important in forecasting inflation, but the most significant factor is the allocation of money and credit.

Inflation is always and everywhere a monetary phenomenon, and we are seeing fundamental monetary changes take place.
Read 14 tweets
In Gold We Trust Profile picture
12 Feb
The Covid-19 pandemic will have profound implications for the global financial system.

Drawing on insights from our 2020 #IGWT report, this 20 tweet thread (created by @TheAustrian3) looks back at our past predictions and offers thoughts on what to expect for the decade ahead.👇
1/ At the start of the Covid-19 outbreak, remarkable things were already happening in the global economy.

The US Treasury yield curve had inverted.

A $12tn market for negative yielding government bonds had emerged, meaning governments were being paid to borrow.
2/ The attempt at monetary normalization by the Federal Reserve between 2017 and 2019 had to be reversed, as we predicted it would in our 2017 #IGWT report.

The Fed cut interest rates three times in the second half of 2019 and resumed quantitative easing.
Read 25 tweets

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