Todd Graf
Precious Metals Advisor
Todd Graf is a seasoned Precious Metals Advisor at Scottsdale Bullion & Coin. He has a decade-long career in finance, previously at Morgan Stanley and Vanguard. He is Series 7 licensed and has extensive experience in traditional and defensive assets, providing clients with solid investment strategies.
Tim Murphy
Precious Metals Advisor
Tim Murphy is a Precious Metals Advisor with over 15 years of experience. He started on the New York Commodity Exchange floor before founding his own brokerage firm. Tim joined Scottsdale Bullion & Coin to leverage the small-company feel with national exposure, focusing on personalized, client-first service and fostering long-term relationships.
“World currencies are in trouble, so there’s a big push towards owning physical gold right now.”– Precious Metals Advisor Tim Murphy
As paper gold and silver prices continue to wane following record-breaking surges, some investors are starting to question why, especially with inflation hitting a 40-year high. During these periods of sideways movement, it’s always helpful to see how the big players in the market are handling the situation.
Many institutional investors are taking advantage of the current dip in gold prices to drastically increase their supply. Watch the video above to hear Precious Metals Advisors Todd Graf and Tim Murphy explain which major buyers are disrupting the market through a massive accumulation of physical gold.
The Illusion of Stagnant Gold Prices
Following gold’s surge to near $2,000/oz levels, the spot price has settled into a relatively minor dip. It’s perfectly normal for assets to cool off after a meteoric rise, but that doesn’t keep some investors from worrying about the value of gold. A quick look at the raging demand for physical gold and silver coins and bars is enough to quell those fears.
Earlier this year, U.S. Mint Data showed that purchases of gold bullion grew 617% in the first half of 2022. The same economic instability that drove investors towards physical gold is still pervading the market which is why providers still struggle to keep up with demand. This is yet another reminder that spot and physical prices aren’t always in sync.
Where is All the Gold Going?
Two powerhouse countries have been quietly and deliberately stacking their gold bullion bars reserves in anticipation of an economic catastrophe. Over the past few decades, Russia and China have been increasing their gold investments at the government level and encouraging their citizens to invest in precious metals too.
It’s estimated that Russia has about 12,000 tonnes of gold with a robust mining operation adding 330 tonnes each year. The Chinese government, which only recently opened up gold investments to the public, has a whopping 30,000 tonnes in reserve. Together, these countries have more than 40,000 tonnes of physical gold which dwarfs the US’ holdings of just over 8,000.
Protection from Failing Currencies
Ever since the United States went off the gold standard in 1971, experts have warned of the USD’s precarious stability. Without any physical backing, the greenback’s value is based on the word of the government. A general mistrust of our financial leaders has led many people to call for a return of the gold standard.
Russia, China, and other countries that have aggressively accumulated physical gold understand the volatility of fiat currencies. The recent economic fallout is the most recent reminder of the instability of the current global market. Gold has a proven track record of offering a hedge against inflation, which is a debilitating effect of the fiat currency market.
Suggested reading: Is Silver a Good Hedge Against Inflation?
Buy Your Gold and Wait. Don’t Wait to Buy Gold
Staying up to date on the latest happenings in the gold market is challenging for the average investor as every day seems to bring new-worthy events. Fortunately, you don’t need to have your finger on the minute-by-minute pulse of the gold market to take advantage of gold’s wealth-preserving ability.
It’s impossible to predict the ups and downs of the precious metals market perfectly. You’re much better off investing in gold now and waiting for the inevitable growth instead of attempting to time your investments perfectly. If you’re interested in learning more about diversifying your portfolio, request a FREE COPY of our popular Gold & Silver Investment Guide Today!