Global gold market: What is driving the rally?

CGTN Europe interviewed Robin Bhar, an independent metals analyst

Transcript

00:00Well, let's talk now to Robin Barr, the independent metals analyst. Good to see you, Robin.

00:05So, for those of us who don't understand the ins and outs of the gold market,

00:09what's so different and important, perhaps, about gold that is both hard and pure?

00:16I think it's really the longevity or durability of the product.

00:22But, as we know, gold jewellery tends to be easily damaged or tarnished because it's relatively softer.

00:32So, this hard, pure gold, particularly accredited with the help of the World Gold Council,

00:40should foster a new market and hopefully a growing market going forward.

00:45So, a new market, you say, why is that? Is it more sellable? Will it enable different kinds of designs?

00:52I think it will do. The process of producing hard gold enables it, perhaps, to be fabricated into a variety of designs,

01:09perhaps, that weren't offered before.

01:12And I think consumers, particularly in China, will be very keen to buy gold,

01:20particularly as the price is at record highs.

01:23And in the form of jewellery, it looks nice as well.

01:27So, what's not to like?

01:29So, is this the moment, then, when Chinese gold brands are able to, perhaps, go global,

01:34something they have maybe slightly struggled with in the past?

01:37I think it will help. I don't think it can do any harm.

01:43I mean, gold bars that are on the good delivery list of the World Gold Council

01:50already are accepted into the global market.

01:54I think this can add to that and help drive growth, deepen the market,

02:01and make these products as popular as the sponsors would seem to think.

02:12So, you said there that the price of gold at a record high, it's up more than 45% this year,

02:17its highest, its best performance, rather, since 1979.

02:20What's behind that, and can it keep on going?

02:25I think the simple answer, yes, we believe it can continue moving higher.

02:32I think there's a variety of factors.

02:35It's, in a simple word, uncertainty, whether it's geopolitical, economic, or whatever,

02:45it's all contributing to the ultimate currency, the ultimate hedge against all the difficulties out there in the real world.

02:57It's a lot of debt, global debt is at record high levels.

03:01I think investors are worried about the basement of currencies like the dollar, the euro, and so on,

03:11and therefore they're seeking refuge, a safe haven in gold.

03:17And nothing goes up in a straight line, so there should be some price correction.

03:22But we've found that dips have found good buying interest, so I don't think corrections will be that significant.

03:30And I think the upwards trend definitely will continue.

03:36Robin, good to talk to you. Thanks for coming on the programme.

03:38That's Robin Barr, the Metals Analyst.

03:40Thanks for coming on the programme.