Monetary Matters with Jack Farley Gold’s Time To Shine | Joseph Cavatoni on Central Bank Bullion Purchases, Permitting Reform in U.S., and Global Investor Demand for Gold
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Jun 29, 2025 Joseph Cavatoni, Senior Market Strategist at The World Gold Council, dives into the global gold market's latest trends. He reveals a significant rise in gold purchases by central banks, highlighting the strong demand from Asian and European investors. Cavatoni also discusses the evolving role of gold as a hedge against inflation and the challenges of U.S. mining regulations. The conversation addresses the importance of gold versus cryptocurrencies like Bitcoin and explores the impact of small-scale mining on the environment.
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Gold Demand Drivers
- Central banks and Asian plus European investors have driven recent gold demand, with US ETF flows muted but picking up.
- Central banks view gold as a liquid, protective reserve asset amid inflation and currency concerns.
Gold Market Evolution
- Gold today has more accessible exposure methods and a sophisticated global market than in past bull runs.
- US investors' gold allocations remain low, around 1.5-2%, suggesting room for portfolio diversification growth.
Gold's Economic Drivers
- Gold's price is driven by economic growth and market risk, not just buying trends or fashions.
- Gold acts as a monetary asset with a controlled supply, preserving value during uncertainty.