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Unearthed: Physical Gold Market Dynamics ft. Philip Newman, Metals Focus
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In this episode, live from the IPMI Conference in Orlando, Florida, hosts John Reade and Joe Cavatoni from the World Gold Council interview Philip Newman, Founding Partner of Metals Focus, to discuss the intricacies of the global bar and coin market. Newman explains the differentiation between bar and coin demand versus OTC demand. He discusses recent market trends, noting the strong demand from 2020 to early 2023 in Western markets like North America and Europe, contrasted with different dynamics in China and Turkey. Newman explains the reasons behind price premiums, influenced by supply-demand dynamics and logistical challenges, especially during events like the COVID-19 pandemic and the collapse of regional banks. He also touches on the roles of high-net-worth investors and family offices in the market. Newman concludes by offering insights into future market expectations, emphasizing the importance of price volatility and the resilience of the physical gold market, supported by central bank demand and muted scrap supply.
[4:18] Philip speaks to some key trends that are developing.
[7:32] Why do premiums exist when it comes to the cost of buying physical gold?
[11:36] What happens when you sell your gold, do you capture that premium?
[20:48] Are the dynamics with gold different to silver, platinum or palladium and how similar are they?
[25:05] Philip, Joe and John share their fun facts about gold.
Additional Resources:
Notable Quotes:
“You get very different trends, between high net worth and family office investors on one and retail investment on the other. ” - Philip Newman
“Sometimes these markets can blow a little bit hot and cold, but it’s always a struggle, I think, for the trade to try and forecast that demand.” - Philip Newman
“A retail investor is potentially going to be losing some of that premium they paid, but the hope is that the gold price has strengthened and therefore that is comfortably offsetting some of that potential loss on some of the premium.” - Philip Newman
“I think maybe you’re paying a bit more attention to the fact that the fed could reduce rates and so that, I think, is a bullish signal and I think for some of those investors there has been some fear of missing out.” - Philip Newman
About World Gold Council
We are a membership organization that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.
You can follow the World Gold Council on Twitter at @goldcouncil and LinkedIn.
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