A new study by Tresor Gold, a data-driven gold mining company developing exploration and mining projects in Sierra Leone shows that professional investors found 93 percent exposure to direct investment in gold and gold miners to increase over the next 18 months with 9 percent predicting dramatic increases.
The attraction is the rally in the price of gold which is expected to be sustained in the year ahead. The growing concern about a global banking crisis is scary and has been the push for increased allocations to the gold and gold mining sector, the study for Tresor Gold with investors in Canada, Australia, the US, the UK, UAE, France, Germany, Switzerland, Qatar, and Saudi Arabia found.
Almost about 96 percent of questioned sovereign wealth funds, pension funds, private equity funds, venture capital funds, and family offices were responsible for $307.5 billion assets under management and believe the price of gold will be higher at the end of this year compared with the end of 2022.
The study also reveals that more than six out of 10 (61 percent) predict the price of gold will be 5 percent or more higher at the end of 2023 compared with last year with 70 percent predicting the price will be more than $2,150 compared with around $2,000 when the research was carried out. Around 15 percent say the price will exceed $2,500.
The key reason for increased allocations to gold and gold miners is growing concern about an international banking crisis. Around three-quarters (76 percent) cited that as one of their top four reasons for boosting allocations.
Around 70 percent pointed to the belief that the Federal Reserve is set to pause rate rises while 61 percent cited fears of a global recession and 60 percent gold’s role as a hedge against inflation among their top four reasons for increasing allocations.
The research found that 60 percent of investors believe that gold and gold mining stocks should make up 6 percent or higher of core holdings by professional investors.
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