{"id":1475609,"date":"2024-07-06T14:30:00","date_gmt":"2024-07-06T18:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1475609"},"modified":"2024-07-06T14:30:00","modified_gmt":"2024-07-06T18:30:00","slug":"summer-feeling-hotter-than-usual-gold-could-be-too","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/summer-feeling-hotter-than-usual-gold-could-be-too\/1475609\/","title":{"rendered":"Summer Feeling Hotter Than Usual? Gold Could Be Too…"},"content":{"rendered":"

Summer Feeling Hotter Than Usual? Gold Could Be Too…<\/span><\/p>\n

\n

Via SchiffGold.com,<\/em><\/a><\/p>\n

Certain climate scientists, research economists, and precious metal investors agree: This year could be one of the hottest on record.<\/strong><\/em><\/p>\n

Climate change has long been a popular theme among left-wing media outlets, and this transitional El Nino-La Nina season has provided plenty of fuel for the fire. 2024 stands a\u00a0fighting chance of seeing the highest temperatures ever recorded<\/a>, climate researcher Zeke Hausfather told CNN, beating out a blazing 2023.\u00a0The earliest Cat. 5 hurricane<\/a>\u00a0recorded in the Atlantic has already shattered the Caribbean islands, striking during carnival season and leaving a wake of \u201capocalyptic scenes,\u201d\u00a0according to The Guardian\u2019s Caribbean reporter<\/a>.<\/p>\n

Here\u2019s the real surprise: Fluctuating temperatures and ferocious summer storms may be valuable economic indicators in the gold market<\/strong><\/em>.<\/p>\n

<\/a><\/p>\n

In times of uncertainty, investors flock to all that glitters, driving supply down and boosting price\u2014especially when that uncertainty turns political.<\/p>\n

\u201cGold\u2019s carbon profile and decarbonization potential may reinforce or amplify gold\u2019s role as a safe haven asset, risk hedge and store of value during periods of market stress,\u201d<\/strong><\/em> according to the\u00a0World Gold Council.<\/a>\u00a0<\/p>\n

\u201cThis lends further credence to our analysis suggesting that gold\u2019s long-term returns may be more robust than those of many mainstream asset classes in the context of a range of climate scenarios.\u201d<\/em><\/p>\n

It\u2019s not just weather that has investors pricking up their ears. In fact, price volatility is far more closely linked to how global leaders and public discourse respond to climate events.<\/strong><\/p>\n

A\u00a02023 study<\/a>\u00a0found a strong correlation between return volatility and two types of climate change risk:\u00a0transitional<\/em>\u00a0(i.e., the political and social move toward green energy) and\u00a0physical<\/em>\u00a0(actual devastation caused by climate events). Researchers found that gold prices fluctuate more in the face of green energy\u00a0policy<\/em>, and less under severe weather conditions that aren\u2019t widely discussed.<\/p>\n

That\u2019s likely because no one knows exactly what to believe. Despite alarmist media reports, life so far remains largely uninterrupted by climate change. But if politicians really believe we\u2019re heading for \u201csubmerged countries, abandoned cities, fields that no longer grow\u201d\u2014to\u00a0quote former President Barack Obama<\/a>\u2014they must also believe they\u2019re doing humanity a favor by burning up paper money in a slow-fire of inflationary \u201cgreen\u201d policy. In politics, not climate itself, lies the real uncertainty that drives investors to make sharp, aggressive moves in the market.<\/p>\n

From the\u00a0White House this week on its nearly apocalyptic green energy concerns:<\/a><\/p>\n

\u00a0\u201cPresident Biden is delivering on the most ambitious climate agenda in American history\u2014an agenda that is lowering energy costs for hardworking families, bolstering America\u2019s energy security, creating thousands of good-paying jobs, and strengthening community-driven climate resilience across the country.\u201d<\/em><\/p>\n

What Biden had to say about this mountain of new legislation:<\/a>\u00a0<\/p>\n

\u201cIt\u2019s going to be significant \u2026 We\u2019re going to face a tough summer, but we\u2019ve taken significant steps to ameliorate the concerns.\u201d<\/em><\/p>\n

Significant handouts = significant inflation<\/a>\u00a0= significant need for a stable store of value.<\/strong><\/p>\n

Particularly during an election year, legislation presents a major \u201ctransition risk,\u201d and that\u2019s where gold comes in.<\/p>\n

A second reason for gold\u2019s price fluctuations when harsh weather hits the news and policy stage is its role in decarbonization, the process of reducing potentially climate-altering emissions from industrial manufacturing.<\/strong><\/p>\n

Mining is notoriously emissions-heavy, but as the World Gold Council points out, there\u2019s potential to develop eco-friendly methods that could be especially pertinent to gold.<\/p>\n

\u201cIt is credible that gold mining might reach net-zero by 2050,\u201d<\/strong><\/em>\u00a0report authors wrote<\/a>.<\/p>\n

\u201cThe opportunity for sectoral decarbonization [in gold mining] is clear, concentrated and, compare[d] to many sectors, relatively simple and accessible.\u201d<\/em><\/p>\n

With gold becoming an increasingly \u201cclean\u201d metal,\u00a0also playing a significant role in \u201cgreen\u201d tech<\/a>, demand for the metal will surely rise during the clean-energy transition,\u00a0driving prices skyward<\/a>.<\/p>\n

Then, finally, there\u2019s the worst-case scenario.<\/strong><\/p>\n

Suppose resources\u00a0do<\/em>\u00a0become scarce. In an economy where governments and citizens alike are\u00a0scrabbling for a healthy food<\/a>\u00a0and water supply, basic industrial metals, and functional transportation, paper money will be the last \u201cstore of value\u201d on anyone\u2019s mind\u2014except for stoking fires. Gold stands a better chance of survival should global tensions escalate, whether the cause is climate, pandemics,\u00a0or war<\/a>.<\/p>\n

The 2023 study suggests that during times of real physical risk attributable to climate change, gold prices tend to hold steady. That\u2019s a sign to watch out for\u2014and an economy to invest in early.<\/p>\n

Come rain or shine, climate policy decisions and public discourse will significantly shape precious metal prices,\u00a0as green energy agendas surge ahead and receive ever larger media coverage.<\/a><\/strong><\/p>\n

\u201cWe note that an increase in climate risk has no definitive effect on the economy until the component of climate risk being considered [i.e., discussed in political circles] is factored in,\u201d according to the 2023 study authors. <\/em><\/p>\n

\u201cAn increase in news coverage of the physical risk factors [for example] will create a societal concern which can impact investor sentiments and consequently the entire economy.\u201d<\/strong><\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSat, 07\/06\/2024 – 10:30<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/summer-feeling-hotter-usual-gold-could-be-too<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Summer Feeling Hotter Than Usual? Gold Could Be Too… Via SchiffGold.com, Certain climate scientists, research economists, and precious metal investors agree: This year could be…<\/p>\n","protected":false},"author":0,"featured_media":1475610,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1475609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1475609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1475609"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1475609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1475610"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1475609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1475609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1475609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}