Newmont Corporation T.NGT

Central Banks Buying Gold - 3,600 tons (2024-2030)

[HoneyBadger77]

Commodity Analysts are projecting continued gold demand / buying by Emerging Market Central Banks of about 600 tons per year until 2030 to meet Emerging Markets Central Bank demand.  This means gold producers are going to need to produce at least 3,600 tons more gold in the next six years (from 2024 to 2030) just to meet this extra Central Bank Demand.

These ANZ Commodity Analyts project $2,200 US gold by 2024 year end which would increase NEM's net margin to about $800 US per ounce or between about $4.9 to $5.7 billion US in net profit (if they produce their projected 6.9 million ounces in 2024 and get AISC down to $1,400).

But you'd never know NEM's future is looking this bright by the relentless beat down of their share price which hit an 8 year low today.  Don't be fooled though, look at a 10 year chart of NEM and the huge volume spikes that preceded each of the last significant run ups in NEM share price and it looks like NEM share volume is signaling a new uptrend soon.  Also, the signiificant incease in EPS estimates that start in Q2 2024 and continue throughout 2025 would sure seem to suggest better days ahead.

HB77      

A few noteworthy Excerpts:

“[Emerging market] central banks could purchase over 600 tonnes of gold annually until 2030, to take its share in their foreign reserves to 10%. China will likely occupy the lion’s share in global official gold demand,” the analysts said.

Although the gold market continues to wait for a catalyst as prices consolidate above $2,000 an ounce, analysts at ANZ said that central bank demand should help support gold prices push back to record highs of around $2,200 by the end of the year.

Central banks are turning to gold as they lose faith in bonds - ANZ | Kitco News