Gold has once again emerged as a focal point in global financial markets, gaining significant attention from investors amidst economic instability and geopolitical tensions. In 2024, the price of gold increased by over 28%, reaffirming its role as a reliable asset for capital preservation during uncertain times. Below, we explore the primary factors influencing...
The Federal Reserve and Market Dynamics
The financial landscape is increasingly influenced by both economic policies and technological advancements. On the monetary policy front, the Federal Reserve is widely anticipated to continue reducing interest rates throughout the year.
According to Robert R. Johnson, CEO of Economic Index Associates, projections based...
The global financial landscape witnessed a pivotal development on December 2, as Euroclear resumed settlement operations for 10 Russian Eurobonds. Among these issuers are major players such as RUSAL, Russian Railways ( RZhD ), and EVRAZ. This decision comes amidst a backdrop of geopolitical complexities and sanctions, marking a significant step for both investors...
The inclusion of Gazprombank in the sanctions list has introduced significant challenges to payment transactions, particularly those involving the Russian ruble. Due to the necessity of involving Russian correspondent banks, ruble settlements now carry considerable risks. Most Russian banks being under sanctions exacerbates these complications, rendering ruble...
The global investment landscape is shifting significantly, with European funds experiencing large-scale outflows compared to other regions, such as the U.S. and Asia. Amid mounting economic challenges, geopolitical uncertainties, and the evolving preferences of institutional investors, the question arises: why are investors looking elsewhere, and what...
The sanctions imposed on Gazprombank represent a significant challenge, but at the same time, they are not an insurmountable barrier to continuing payments for Russian gas. The OFAC sanctions framework often allows for exceptions, and in this case, we can anticipate mechanisms similar to general licenses that have already been granted to other Russian banks for...
Impact of Macroeconomic Dynamics on Gold
Gold has long been regarded as a strategic hedge against inflation, and the prevailing macroeconomic landscape has further bolstered its allure. Over recent months, spot gold prices surged to an all-time high of $2,788 per ounce. However, the acquisition of physical gold remains less favorable due to logistical...
Reasons for record outflows from European funds (-56 billion dollars)
The main reason for European fund outflows is the slowdown in economic growth of the region. After the energy crisis of 2022-2023, EU economies have never been able to return on a path of sustainable growth. High interest rates, which the European Central Bank continued to keep in place to...
Justification of the investment:
1. The growth of industrial demand for silver
Industrial use accounts for a significant share of global silver consumption — about 50-55%. The main application is electronics, electrical engineering, solar panels. The demand for silver, as a key component of these technologies, continues to grow with the development of renewable...
- Issuer: Prospect Capital Corporation
- ISIN: US74348GKE97
- Coupon: 5.5% (in US dollars), paid twice a year
- Repayment: December 15, 2025
- Yield to maturity: 11.7%
- Rating: BBB-
- Premium: About 6 basis points for securities of similar quality
Justification of the purchase:
Prospect Capital Corporation** (PSEC) is one of the largest players in the...
- Issuer: TechnipFMC
- ISIN: FR0011273432
- Coupon: 4.00% in euros (payment 1 time per year)
- Repayment: June 15, 2027
- Yield to maturity: 5.46%
- Rating: BBB-
- Award: +2% for assets of similar quality
Justification of the purchase:
TechnipFMC is a leading international company operating in the oil and gas technology sector, with a focus on the development...
Introduction
The VanEck Vectors Rare Earth/Strategic Metals (REMX) ETF is a US-based fund focused on rare metals and strategic resources that play an important role in the development of high technologies. REMX repeats the performance of the MVIS Rare Earth/Strategic Metals index. The fund invests in various mining companies, most of whose assets are located in...
Justification of the investment:
1. The role of gold as a hedge asset
In conditions of economic instability, rising inflation and geopolitical risks, gold is traditionally considered as a "peaceful abode" for investors. In 2024, high volatility in the stock and currency markets is projected to continue, which will increase demand for protective assets such as...
By Ashitha Shivaprasad
(Reuters) - Gold prices slipped on Friday but were headed for a third straight weekly gain as elevated geopolitical tensions boosted safe-haven appeal, while palladium was set for its best week in three.
Spot gold eased 0.4% to $2,725.73 per ounce, as of 0438 GMT as investors booked profits after a record rally. Prices hit a record high of...
Gold prices eased on Friday but were on track for a third straight weekly gain, as investors sought the safe-haven metal in the backdrop of rising geopolitical tensions.
Spot gold eased 0.2% to $2,729.35 per ounce by 0731 GMT due to profit-taking. Prices hit a record high of $2,758.37 on Wednesday and are up 0.3% so far in the week.
U.S. gold futures fell 0.3% to...
2024 has been a pretty good year so far for investors in gold – for a myriad of different reasons. In the following analysis, Julia Khandoshko, CEO at the European broker Mind Money, shares her outlook with us for the rest of 2024 and beyond for investing in gold – as well as some of the ways for investors to gain exposure to this unique asset class
Mix of...
