(Kitco News) – Gold had a tricky 2021 after a great price rise the year earlier. Apart from the worst points of the pandemic, Perth Mint sales performed pretty well during that period and the firm has provided projections for this year.
Perth Mint manager for listed products and investment research Jordan Eliseo said “From the end of March through to end December, gold trended higher, supported by rising inflation rates and a renewed decline in real bond yields,”
The Perth Mint sold a record 1,050,242 troy ounces of gold and more than 19 million ounces of silver for 2021. This came as the World Gold Council (WGC) reported November 2021 as being just the second month in the year to fall into net sales rather than purchases.
Eliseo continued the interview with positivity for gold prices into 2022, showing understanding that for a commodity to rise, it must endure a trough. “It’s worth noting that gold has now worked through a roughly 15-month time period that at its worst saw prices correct by almost 20 percent from peak to trough,”
Eliseo added, “Corrective cycles like this are part and parcel of every market, and indeed are often a healthy development as they allow the market to rid itself of excess froth and speculation.”
So far this year the gold price has been hampered by a rise in U.S. yields but the real inflation rate still remains an interesting point of contention. Inflation is running higher and the U.S. 10 year yield may have risen but it is still very far behind the annual CPI rate. The Fed member comments must be watched closely for clues but the gold price is still in consolidation near $1800/oz.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.