Gold Market Foundations

About this course

The value of all the gold in the world is $25 trillion – yet very few investors have gold in their portfolios. Ironically, gold is the oldest financial asset, but it is poorly understood and under-researched. There are many stories about gold, but very little evidence. This course provides the evidence. After completing the course, you will understand how gold performs during equity market turmoil and during inflation surges and its role in a diversified portfolio. The course explores the reasons why the gold price has recently surged by focusing on the financialization of gold, central bank accumulation, de-dollarization efforts, questions about the status of the U.S. dollar as a reserve currency, and the potential demand shock if gold is classified in a future version of Basel III as an asset commercial banks can hold for regulatory purposes (central banks hold gold as a reserve asset and it seems contradictory not to allow commercial banks to do the same). The Golden Dilemma framework is also introduced to credible future price paths for gold. Finally, the long-term prospects for gold are detailed, given expected technological innovations.

Course objectives

• to provide evidence-based analysis of gold's market behavior
• to introduce frameworks for understanding future price trajectories of gold