Page 24 - Bullion World Volume 04 Issue 07 July 2023

Bullion World | Volume 3 | Issue 7 | July 2023

Questions investors in gold were about our age leaning towards
Mr Nikos - What do you think of the structural their 40’s but we in japan have seen a significant shift
imbalances on the fiscal side in the US economy in the sentiment where a lot of young investors are
and how will gold react to these unfamiliar interested in gold. These young investors don’t really
circumstances? care about the past prices and see the potential of gold
Mr Bart - As the fiscal deficit goes on increasing which in the future. This can be considered a good shift and
in turn makes prices in the USA extremely high and we at JBMA want to educate the young investors to help
unfavourable for the normal public. The place of Dollar them grow.
as a reserve currency would not be affected but there
would be a significant hike in all the prices in order to Question from the audience.
reduce the spending. Even though there is no threat in What is the cause of fluctuations in the investor
the foreseeable future, it would be advised to diversify demand considering the treasury yields and gold
one’s portfolio and not just hold the USD which will have ETF’s?
erosion of some scale. With respect to gold there is no Mr Nicholas - There was a retail or investor side
counter-party risk and it is an appreciating asset, thus which was not conducive to the high gold prices thus
making a very safe investment for the years to come. decreasing the overall investor demand, Gold is the
only asset class which has seen substantial growth
Mr Nikos - What do you think is the correlation when compared to bonds and equities. With the fed
between the gold price and demand in the physical presumably giving a pause on the rate hike the next few
market? months can be a tricky time for gold even though the
Mr Nichollas Frappel - The kilo-bar demand for gold long-term outlook remains bullish.
has remained pretty much constant here in the Asian
region but we did see a substantial decrease once the Looking at the gold-silver ratio and the current
prices crossed the $2000 mark which was just after prices during this uncertain period, what is your
the pandemic. When compared to this year, there was outlook on silver being considered a safe-haven
no drop in demand and there was buying which was asset?
not related to price. On the downside, 1850 to 1880 Mr Bart Melek - Regardless of the recessionary or
can be said as the threshold for a substantial pick-up in uncertain period we are in, the fundamentals for silver
demand. are looking better than ever and with more usage in the
industrial arena we can see a significant increase in the
Mr Nikos - What is the shift in the sentiment in the prices of silver in the long-term. Coming to the gold and
Japanese investors in these past years? silver ratio anything above 1/85 is a really good point to
Mr Yuichi- Well mostly the Japanese investors are very accumulate silver. Silver can be considered a safe haven
smart and they have a traditional philosophy of buying in today’s date because of the cheap prices compared to
low and selling high. Mostly in the previous years all the gold and the increase in demand for silver.

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