The world-famous analyst made statements revealing the bullish situation for gold. George Milling-Stanley, Head of Gold Strategy at State Street Global Advisors, laid out the foundations for his views predicting a bull market in 2022 in a recent interview. Details at Kriptokoin.com .
Is 2022 a bull year for gold?
The famous analyst said, “I think we will see a better performance than we saw in 2021. I think it’s important to put 2021 in perspective. To remember that gold fell in two banner years. The price increased 18% in 2019. It has increased by 24% in 2020,” he said. Talking about ETF GLD, Miling-Stanley said, “We’ve lost nearly $10 billion so far in repayments from GLD in 2021, but this comes after a year in which we hit $15 billion in 2020. So we’re still doing pretty well.” Milling-Stanley explained why he was optimistic about the yellow metal:
As long as investors see gold in their portfolio, most people still see it – they still believe it offers them some protection against the unexpected. Unexpected macro or geopolitical? There is still plenty of potential for the unexpected to continue to emerge. Maybe we haven’t seen as much in 2021 as we’ve seen in the previous few years, which is one of the reasons why gold has been a bit sluggish this year, but I still expect to see uncertainties, especially on the stock.
Milling-Stanley compares gold to other assets. In this context, he especially writes about stock markets. The analyst says:
We saw stock markets close the year with new highs almost daily. This is great news, but it also makes me wake up at night and worry about how much longer this will take. If we are to see more uncertainty in the equity markets and low interest rates will continue for the foreseeable future, then gold’s traditional role will continue.
The relationship between the price of gold and inflation
When looking at inflation, “I think you know, inflation always affects the gold market. affects in the fall. “If inflation seems to be rising, people naturally gravitate towards an asset like gold.” Drawing attention to the traditionally prominent role of gold’s protection against inflation, the analyst expresses his belief that this role will continue. Finally, in his interview with Yahoo, the analyst makes the following statements on the subject:
Now, if we continue to see inflation figures of around 5% or 6% per annum that we have been looking at for the last few months, especially now that the authorities have decided this, we will temporarily change it. that is no longer true. So they are looking for longer term inflation, then I think gold will benefit from that. But there’s always the fear that if inflation is too high or rising too fast, the Fed will likely move fast if one or both happens.