The Ultimate Gold-Market Primer
The Bank
Good Morning.
Attached is Part 1 of our extended coverage of Goldman Sachs’ report on gold—what ZeroHedge aptly called “Goldman’s Most Comprehensive Look at the Gold Market Ever.” We agree.
This piece is the most thorough and candid discussion on gold we’ve seen consolidated in one place. Its clear aim is to re-educate sophisticated clients who have little direct experience with gold but now find themselves needing a textbook to catch up. The writing is accessible without being pedantic, making it an ideal entry point.
On the “re-education” theme, recall Michael Hartnett’s most recent remark about how under-owned gold remains among his clients. Or rewind five months to Bank of America’s own Gold Primer, itself a response to rising client interest. Since then, gold has rallied $700, and miners are only just beginning to accelerate.
Goldman’s analysis is the natural continuation of this trend: the re-emergence of gold as both a hedge against risk and a check on policy weakness. It is also notable that Lina Thomas has held firm to her “physical demand over Keynesian correlations” view, even as other banks pushed back.
Far from dry, the report is packed with nuance and insight, which we will unpack further in a full Founders walkthrough this weekend.
Topics for Part 1
Gold’s Market Structure: Exchanges, Refiners, and Global Players
Stock to Flow: Supply-Price Insensitivity
Who the strong and weak-handed owners of Gold are.
How Physical Demand has changed Gold-modelling
Why high prices do not cure high prices in gold
