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ECB policy may shift but its long term effects keep gold relevant

World Gold Council/Staff/9-2-2021

“European investors are no strangers to investing in gold strategically, particularly at times of crisis.  As one example, the Global Financial Crisis (GFC) led to a dramatic increase in gold investment in the region – leaping from 70 tonnes (t) in 2007 to over 400t over the next four years –as investors sought to protect their wealth. More recently, the threat posed by COVID-19 to both the health of the European population and economy, combined with large-scale monetary and fiscal stimuli, has elicited a similar demand response.”

USAGOLD note: Though the European financial press plays up the prospect of ECB tapering, the World Gold Council suggests that “the pace of policy change will likely be slow as several risks remain,” i.e., the so-called “dovish” tapering. Under such circumstances, the demand for gold coins and bullion among private investors in Europe could remain strong, as the WGC points out above.

bar chart showing gold coin and bullion demand 2004 to present

Chart courtesy of World Gold Council-Gold Hub • • • Click to enlarge


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