This chart shows the percentage of total global assets allocated to gold and gold miners over different time periods. The data points include:
28% in 1921
20% in 1932
30% in 1948
26% in 1981
Only 1% in 2024
This steep decline in the allocation of global assets to gold and gold miners from previous decades suggests that gold is currently underrepresented in investment portfolios relative to historical levels.
Interpretation:
Bullish for gold stocks: The chart implies that gold is under-owned right now (at just 1% of total global assets), which could mean there is room for significant growth if investors start reallocating toward gold, especially during periods of uncertainty like wars or financial instability. Historically, when gold allocations were higher, it often followed or preceded economic crises, suggesting a potential rise in demand for gold as a safe-haven asset.
In summary, this chart would generally be considered bullish for gold stocks, as it highlights the potential for a reversion to historical norms, which could lead to increased demand for gold and gold miners.
THIS IS NOT FINANCIAL ADVICE, BUT ONLY MY P.O.W.
Submitted October 11, 2024 at 12:09AM by NoFlexZone888 https://ift.tt/kH7ILtP
