Gold over the last 50 years

The first chart below shows the two major bull runs gold has experienced in the last 50 years. The first bug gold rally came when Gov’ts gave up control of gold prices and relaxed private ownership rules around 1970.

The second major bull rally was between 2003 and 2011 when annual demand for gold increased from 2600 tonnes to 4700+ tonnes.

Gold, bond prices and the USD

With many central banks moving to zero rates and below we can expect investors to move into gold as bond yields are reduces and the risk of inflation increases that would devalue other assets and currencies. With central banks asset buying that dilutes the value of currencies and adds to the value of gold. See the Gold, bond and US dollar chart below:

ETF holdings rise

ETF holdings have been rising with record number of holdings this year at around 1800 tonnes.
There are some areas of falling demand for gold as well. Here is one chart showing China and India buying less gold jewelry, bars and coins: