news

cailianshe news, september 25 (editor: xiaoxiang)as the international gold price continues to hit new highs and approaches $2,700, the precious metals market is also setting a new "milestone": the total market value of global physical gold has exceeded the $20 trillion mark for the first time!

jeroen blokland, founder of the blokland smart multi-asset fund, was the first to notice this phenomenon across financial markets.

blokland wrote in a tweet on wednesday, "the real-time market value of gold has exceeded $20 trillion for the first time!" and attached a chart of the changes in the gold market value produced by the agency.

blokland has been closely following the precious metals market for many years. earlier this year, he repeatedly pointed out the lag in the statistics of gold market value changes on some common websites in the market.

for example, on companiesmarketcap, a well-known market value statistics website in the industry, the latest statistics on the gold market value remain at us$18.019 trillion, but blokland has pointed out many times that the relevant figures are too low, because the gold above-ground stock data used by companiesmarketcap is still the old data of the world gold council three years ago (2021).

so, how is the current gold market value calculated to have exceeded the 20 trillion us dollar mark?

the answer is actually very simple. according to the latest data released by the world gold council in february this year, by the end of 2023, the world's mined gold reserves will be 212,582 tons. converting this number into ounces (1 ton = 35,273.96 ounces) and multiplying it by the current gold price (which reached a high of $2,670 during wednesday's session), it has just exceeded $20 trillion.

there is no doubt that this figure is clearly a milestone worth celebrating for the precious metals market.

what is the purchasing power of $20 trillion in gold? if we compare it to the stock market, the world's gold can just buy the top ten listed companies in the world.——equivalent toapple、microsoft、nvidia、amazon、google、saudi aramco、meta、berkshire、tsmcandeli lillythe total market value of .

judging from the changes in market value over the years, the past four years have undoubtedly been a period of rapid growth in the market value of gold.

before the outbreak of the epidemic in 2020, the total market value of gold had never exceeded 10 trillion us dollars. however, in recent years, this ancient and timeless asset has written a new miracle of soaring prices.

although the tightening cycle of global central banks in the past few years is not logically conducive to gold as an interest-free asset, gold has not stopped rising. strong central bank purchases and increasingly tense geopolitical situations have continuously promoted the demand for gold as a safe haven and diversified allocation, thereby also supporting gold prices.

as the federal reserve and other central banks around the world have recently entered a new easing cycle, gold prices have undoubtedly received further upward momentum recently.so far this year, gold prices have risen by nearly 30%, the largest increase in the same period in the past 30 years.

ubs“while gold has hit multiple new highs this year and outperformed major equity indices, we believe there is still room for gold prices to rise over the next 6-12 months,” analysts said in a report last month. “we believe key factors include a revival of large-scale exchange-traded fund (etf) inflows - something that has been lacking since april 2022.”

many analysts said that funds flowing into gold exchange-traded funds (etfs), especially from western investors, are expected to increase in the coming months, which is expected to add more positive stimulus to the already record high gold prices.

many wall street institutions have now raised their gold price target to the $3,000 mark.

michael widmer, commodity strategist at bank of america, wrote in a recent note to clients that factors such as increased investment demand, geopolitical tensions, interest rate cuts and central bank gold purchases could boost gold prices, which the bank expects to reach $3,000 an ounce in the next 12 to 18 months.