The top 10 facts in the 2023 #IGWT report.
A thread:
1. If the U.S debt ceiling is raised again, it will be the 79th increase since 1960, the 21st since 2000, and the 30th under a Democratic president. Republican Presidents have raised the debt ceiling 49 times. 1/
2. Gold, you are the apple of my eye… in terms of purchasing power! In 2007, the first iPhone cost $599 or the equivalent of 0.92 ounces of gold. Fifteen years later, only 0.75 ounces of gold are due for the iPhone 14 Pro, which cost $1,499 at its launch in September 2022. 2/
3. Despite US equities becoming more undervalued in the last year (Shiller P/E ratio 38.3 in 2021 vs 2022’s figure of 28.3), gold is still historically undervalued compared to US equities. The Gold/S&P 500 ratio of 0.49 is significantly lower than the long term average of 1.66 3/
4. Miners profit from prioritizing people and planet! A study by the WGC revealed that companies with the highest community scores achieved a total shareholder return of 63%, compared to just 14% for those with the lowest scores. For more, see page 333 of the report. 4/
5. 2022 saw the highest gold buying by central banks on record, i.e., since 1950, when the WGC started its records. Buying reached 1136t, with Türkiye reporting the largest purchases, adding 148t to its reserves. 5/
6. De-dollarization is a reality: Adjusting for FX movements, USD has lost about 11% of its market share since 2016 and 2x that amount since 2008. USD’s share of global currency reserves dropped to only 58% in 2022 from a share of 73% in 2001. 6/
7. After adding 128 tonnes of gold reserves over a six month period between November 2022 and April 2023, the PBoC’s gold reserves now officially stand at 2,076 tonnes. Jan Nieuwenhuijs estimates this amount could be twice as much at 4,400 tonnes of gold. 7/
8. Factoring in gold smuggling of 150–200 tonnes per year for the last 20 years, total gold stock in private hands in India amounts to 31,000–32,000 tonnes - more than the combined gold holdings of the top 27 central bank gold holders in the world! 8/
9. Silver inventories declined in 2022 by 430.9Moz from their end-2020 peak. This is equivalent to more than half of annual mine production, and also more than half of the inventories held in London vaults offering custodian services, as reported by the LBMA. 9/
10. Commodities are historically undervalued: Today the S&P GSCI is below 50, and each time it dropped below this level (1929, the late 1960s, and the late 1990s), a substantial commodities bull market followed. 10/
⚡ 1/10 Gold is surging — so why aren't miners booming?
💰 Despite record gold prices ($2,389/oz in 2024), major gold producers aren’t racing to expand. The new mantra? Fiscal discipline over flashy growth. Here's why miners are choosing to save, not to grow. 🧵👇 #GoldMiners #IGWT25 ingoldwetrust.report/?lang=en
2/10 ⚒ Gold is there—but they're not digging fast enough
🔍 Between 2009–2023, miner revenues generally tracked gold prices. But in 2024, this broke:
Gold up 📈to $2,389
Revenues? 🥱Largely flat.
Why? Because production is down across most firms despite record pricing. #GoldMining
1/10 🚨 Saudi Arabia is quietly launching a new gold rush
Backed by $2.5 TRILLION in mineral wealth and Vision 2030, the Kingdom is turning geology into geopolitical leverage. This is more than mining—it's a shift in global power dynamics. 🧵👇
Read the full #IGWT25 here: ingoldwetrust.report/?lang=en
2/10 📍 The Arabian-Nubian Shield
This 3M km² mineral-rich belt sits beneath western Saudi Arabia. Only 30% explored, yet already holds 48 known minerals. 💰 In Jan 2024, the Country doubled its mineral wealth estimate from $1.3T →$2.5T. #NaturalResources
3/10 ⛏️ Ma’aden is the key
The Saudi Arabia’s state-backed mining giant:
- Produced 407,000 oz of gold in 2023
- Mansourah-Massarah mine output grew 10x YoY
- Target: 1.6 million oz by 2040 – a 4x increase
🧠 Saudi Arabia transforms from oil to ore, Ma’aden leads the way. #MiningCompany
📢 1/10 🇨🇳 Where is China heading in a world gripped by system rivalry?
The #IGWT25 report in the Focus on System Rivalry: Where Is China Heading? chapter dives deep into Beijing’s grand strategy amid economic shifts, demographic headwinds & geopolitical tensions. Let’s unpack it. 🧵👇
#Geopolitics ingoldwetrust.report/in-gold-we-tru…
2/10 🧱 China's economic model is hitting a wall
Demographics are turning south, with population decline accelerating.
Beijing must pivot its growth strategy from focusing on real estate and infrastructure. But, it’s not clear to what. 🤷♂️
#ChinaEconomy #Demographics
3/10 🏛️ China is doubling down on centralization
🙇♂️ Xi Jinping’s leadership has pushed ideological conformity, tighter state control & a return to Mao-era governance styles.
Innovation is under pressure.
#XiJinping #ChinaPolitics
As is customary at every BRICS Summit, the leaders have accepted a declaration this year at Kazan, outlining decisions, goals, and agreements between the parties.
Here is a thread outlining everything in the declaration of importance to currency and banking:
1. The leaders of the BRICS countries express their commitment to enhancing financial cooperation within BRICS. They support the use of local currencies in financial transactions between BRICS countries and their trading partners.
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2. The document tasks the Finance Ministers and Central Bank Governors of the BRICS countries to continue considering local currencies, payment instruments, and platforms. They are to report back to the BRICS leaders by the next Presidency.(next year)
2/
3. The BRICS Contingent Reserve Arrangement (CRA) is recognized as an important mechanism to forestall short-term balance of payments pressures and strengthen financial stability. The document expresses support for the CRA mechanism improvement via envisaging alternative eligible currencies and welcomes the finalization of the amendments to the CRA documents.
3/
1. The high inverse correlation between US real yields and the gold price is history (for now). Despite the rise in real yields, the rise in the gold price could not be halted.
2. Central banks are a decisive factor in the demand for gold: Demand from these institutions is not very price-sensitive. Central banks are likely to have put a floor under the gold price.
3. The weaponization of fiat money has lasting consequences: The confiscation of Russian reserves and assets of Russian oligarchs in 2022 was a wake-up call for numerous states, as well as wealthy private individuals from the Gulf states, Russia, and China. (Luxury) real estate in London, New York or Vancouver has always been the preferred destination for savings
from emerging markets, but this has changed in 2022.
We feature quite a few charts, but our favourite remains the gold/Okteberfest beer ratio.
Gold has not only maintained its beer purchasing power over the last 12 months, the ratio even increased from 121 to 123 Maß Oktoberfestbier, despite the price increases in euros. 1/
We also feature the iPhone/gold ratio. Every year, the latest Iphone is more expensive than the previous year.
But not if you hold gold. The first iPhone sold for 0.92 ounces of gold in 2007. Fifteen years later, only 0.75 ounces of gold are due for the iPhone 14 Pro. 2/
Not only do holders of gold pay less than 15 years ago, but they also get a vastly superior product to that of the past, proving that gold is an excellent store of value. 3/