Inflation

Several events are likely to trigger a significant increase in precious metals prices in the near future.

The rise in 10-year US rates accentuates inflation and pressure on consumers, increasing the risk of a market correction.

France is known for having the 4th largest stock of gold in the world, even though the country ranks 23rd in wealth per capita. In fact, over 2,400 tons of gold, or €146 billion at €60,000/kg, are stored in the vaults at 39 Rue Croix des Petits Champs in Paris. But do the French own so much gold...

The price moves in the coming months and year are likely to be spectacular. The combination of technical and fundamental factors can easily drive gold well above $3,000 and silver to new highs above $50.

The price of gold continues to rise, despite the persistent lack of interest shown by Western investors. The decline in outstandings continued in March, albeit less pronounced than in previous months. Even so, this is the tenth consecutive month of outflows from gold-backed ETFs!

It's still too early to know whether a second wave of inflation will occur, but gold seems to suspect it...

Zimbabwe has replaced its local dollar, which collapsed after less than 5 years in existence, with a new gold-backed currency. This is the latest step taken by President Emmerson Mnangagwa's government to end decades of monetary chaos.

The U.S. Treasury bond-buying program is impacting the markets, with potential implications for the dollar and precious metals, notably gold and silver.

The dual situation of the Bank of Japan stalemate - whose credibility is currently being tested by the markets - and the ongoing currency war are clearly benefiting gold.

A gloomy outlook: inflation is set to remain persistently high in Europe. We've been saying this for a long time. A Natixis study supports this view and identifies several factors (which we re-rank in order of importance) driving up prices in the long term.