Carlo Alberto De Casa

Carlo Alberto De Casa

Senior Market Analyst

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About Carlo Alberto

Carlo Alberto De Casa is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. Carlo provides regular commentary for UK notable outlets including the BBC, Telegraph, The Independent Bloomberg and Reuters.


With a credential background in Economic Finance and International Exchange (MA), his critical analysis on gold and silver’s markets performance is frequently quoted by leading publications, week-on-week.


His work for Bloomberg as their Equity Research Fundamental Analyst and later, the brokerage ActivTrades in 2011, consolidated his specialism in currency markets and commodities, which he thoroughly communicated in his 2014 publication.

Gold & Silver Market Analysis for Friday 14th January

Kinesis Money Macroeconomic Analysis In the last few months, investors have been used to seeing inflation data surpassing expectations and forecasts. Yesterday, the opposite happened with the U.S. Producer Price Index for December posting a modest increase of +0.2% - well below the expected +0.4%. Notably, food and energy, two key sectors in the 2021 inflation rally, showed a decline from November. These figures could see some investors believe that inflation pressure is starting to ease. This scenario, in conjunction with a relatively dovish speech by Jerome Powell earlier this week, triggered a decline of the dollar. Indeed, the Dollar Index has fallen below 95 for the first time since mid-November. This has helped the precious metal sector with the gold price rebounding solidly, despite the 10 Year Treasury yields remaining well above the average of 2021 to about 1.70%-1.75%. Gold price 1h chart ($/g) from Kinesis Exchange Kinesis Money Gold Analysis Gold has started the new year showing significant resilience. The rebound seen in the last few days was certainly helped by the decline of the dollar, but we should consider that it happened while expectations for Fed rate hikes in 2022 jumped from 1 or 2 to 3 or 3.5. This all followed the December FOMC meeting and its hawkish meeting minutes, released earlier in January. Therefore, this positive movement should be considered significant. From a technical point of view, the main levels to follow remain unchanged. Bullion is still being traded at around $1,825, with the first resistance just a few dollars above, in the region of $1,830-$1,832. A clear climb above this level could encourage more investors to buy gold, opening space for an extended rally, with a potential target of $1,870 - a level last reached in November 2021. However, if gold doesn’t find the strength to break through $1,830, the price could continue its sideways dance between $1,800 and $1,830 seen in the last few days. Indeed, the first support zone is placed at $1,800 but this doesn’t seem in sight for now. Of course, macroeconomic indicators (particularly inflation and secondarily labour data) and Treasury yields, remain the main catalyst to follow to understand the next steps for gold. Looking at the price in dollars per gram, we can see that bullion is getting closer to $59 per gram. Kinesis Money Silver Analysis Silver seems to have forgotten – at least for the time being – the negative performance of 2021. Indeed, the precious metal is posting a gain of 4% from its price a week ago and is 8% above the level reached 30 days prior. The short-term momentum remains positive, with the spot price trying to break through the resistance zone at $23.30 to continue its recovery to the next key levels of $23.45 and $23.68-$23.70. A successful challenge of both these levels can be seen as a proper inversion (and no longer as a rebound) for the silver price. Find out more about what Kinesis has to offer Learn More Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.

Carlo Alberto De Casa
Carlo Alberto De Casa

14/01/2022

Gold & Silver Market Analysis for Wednesday 12th January

Kinesis Money Macroeconomic Analysis Yesterday, Jerome Powell appeared at the Senate for his re-nomination, as his second term mandate begins. In the hearing, he confirmed that the high rate of inflation was seen as a threat by the Federal Reserve, stating that the US central bank plans to raise interest rates this year in an attempt to run down its trillionaire balance sheet.  It seems that the markets were already well aware of the inflation risk, especially after the minutes from the FOMC meeting last December were released. Powell was calm while stating that the Federal Reserve is expecting month-over-month inflation to be moderate in the months ahead. That being said, the year-over-year inflation figures could be on the way to reaching a historical average in the second part of 2022, after the recent rally in which a three-decade-high was reached.  After a series of hawkish interventions, yesterday's speech was, in fact, interpreted as slightly more on the dovish side. Although, the Fed remains on track for (at least) 3 rate hikes in 2022. The markets are currently pricing 3 rate increases with certainty, with the anticipation of an additional fourth hike (25 basis points) in December 2022.  Overall, the market reaction was positive, with stock indices closing the day positively and Europe opening in green this morning. However, the US dollar has slowed its upwards climb, while the 10-year treasuries yields remained above 1.70%. The focus is now moving to US inflation data (to be released at 14:30 CET), as a continuation of the price rally which could influence the Fed’s upcoming decisions. Kinesis Money Gold Analysis Following Jerome Powell’s intervention with the Senate, the gold price rebounded to reach a one-week-high. Despite the markets’ expectation that interest rates will rise significantly in the next few months, investors are showing a significant interest in gold. Bullion jumped to $1,820 and is now just a dozen dollars off the resistance level placed at $1,830-$1,832. A clear surpass of this threshold would open space for new recoveries, while a signal of weakness would be evident with a decline to $1,800.  Kinesis gold ($/g) chart - 1h - from Kinesis Exchange Today's main catalyst is likely to be the release of US inflation data. Any figures below expectations, could curb the dollar's rebound and help gold continue on its path to recovery. Kinesis Money Silver Analysis Today, silver is now consolidating the recovery it has undergone over the last few days. The price seems to be stabilising between $22 and $23, while the risk zones of $22 and $21.5 are well out of reach. A surpass of $23 would certainly be a positive signal for silver, while the price currently remains in its consolidation phase. Find out more about what Kinesis has to offer Learn More Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.

Carlo Alberto De Casa
Carlo Alberto De Casa

12/01/2022

Gold & Silver Market Analysis for Monday 10th January

Kinesis Money Macroeconomic Analysis Last Friday, the US Bureau of Labor Statistics released the nonfarm payroll data which, safe to say, missed analysts' expectations. Before the release, the forecasts anticipated an increase of around 400,000 new employees, while the official data certified a growth of only 199,000 job units.  It should be noted that figures for the months of October and November last year were positively revised, with an additional +141,000 units. Furthermore, the unemployment rate declined to 3.9%, while average wages grew by 0.6% on a monthly basis. Could these figures change the upcoming decisions of the Fed?  It’s unlikely, even if they have a wider impact overall. The minutes of the FOMC meeting held in December showed that bankers are focusing more on inflation rather than labour data. Within the meeting minutes, the word “inflation” was used a total of 75 times, in conjunction with a hawkish emphasis. Therefore, the expectations for at least 3 interest rate hikes in 2022 is reasonable, and further supported, by the rebound of the US Treasury yield seen in the last 10 days. In this week's economic calendar, the consumer price index will be revealed on Wednesday, closely followed by the producer price index. These two indicators will be strictly followed by both investors and the Federal Reserve. Kinesis Money Gold Analysis Last Friday, the gold price experienced a moderate rebound, after US labour data disappointed investors. On the Forex market, the greenback has lost ground, with the dollar index falling below 96 points.  To put this in context, bullion jumped from $1,786 to $1,796, confirming an inverse correlation with the dollar. The rebound was curbed by the resistance zone placed at $1,800, meaning that bullion has started this week with a slight decline. Overall, the gold price shows little volatility at present, with only marginal movements (by a few dollars). Gold price ($/g) chart - 1h view - from Kinesis Exchange Even if the main focus for the Federal Reserve is on curbing the growth of prices, a weaker US labour market could reduce pressure on the central bank to instigate further hawkish decisions.  From a technical point of view, a surpass of the $1,800 mark would denote strength for gold, even if a clear positive signal would only come about with a return of the price above the $1,830 resistance zone.  Kinesis Money Silver Analysis The weakness of US nonfarm payroll data was a positive catalyst for silver, as well as for gold. The grey metal rebounded in the later trading hours of Friday last week from $22 to $22.4, before slowing down to $22.3 in today’s early trading.  From a technical point of view, the rebound seen on Friday was encouraging, even if a confirmation signal is still needed. It is true that the medium-term trend remains weak, after the decline of the last few weeks. The next resistance zones are placed at $23 and $23.4; a surpass of these thresholds would open space for new recoveries. However, a new fall for silver below $22 would be considered a negative signal, with the next support zone target placed at $21.5. Find out more about what Kinesis has to offer Learn More Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.

Carlo Alberto De Casa
Carlo Alberto De Casa

10/01/2022

Gold & Silver Market Analysis for Friday 7th January

Kinesis Money Macroeconomic Analysis Today, the importance of central bank monetary policy and its domino effect on investment decisions is clear to see. Earlier this week, the Federal Reserve released the meeting minutes for the FOMC meeting held in December last year, giving further insight into upcoming policy decision-making.  It is already widely accepted that the US central bank no longer recognises inflation as “transitory”. Although, the meeting minutes showed a hawkish tone on their part, as policymakers could be preparing for an increase in rates sooner than expected. In fact, some officials expressed a preference for a quicker path towards rate hikes, in order to curb inflation and reduce the bank’s $8.8 trillion balance sheet. The minutes included some particularly hawkish comments:  “Inflation readings remained high, and various indicators suggested that inflationary pressures had broadened in recent months”.  As mentioned, other comments also focused on the broadness of the Fed's current balance sheet. Some bankers noted that “the Federal Reserve's balance sheet was much larger, both in dollar terms and relative to nominal gross domestic product (GDP), than it was at the end of the third large-scale asset purchase program in late 2014”. The hawkish mode of the Fed had a number of effects on the financial market. The most remarkable was the increase in the US 10-years yields, which jumped above 1.70%, and the overall correction of stock markets.  The technology sector was hit, as it generally is, paying fewer dividends. The US Dollar experienced a modest recovery, while gold and silver showed a moderate decline, as a consequence of the increase in bond yields.  The next few trading sessions will give further insight into how the markets understand and respond to the FOMC meeting minutes. Another situation to consider is the one unfolding right now in Kazakhstan, which has resulted in dozens of victims. Due to the clashes over the last few days between protestors and the police, Russia has sent paratroopers to help the president regain control of the country.  Any escalation of the turmoil could increase the demand for gold as a safe-haven asset. Kinesis Money Gold Analysis Already, the bullion price has been hit by the hawkish tone of the FOMC minutes. The rally of the treasury yields generated a decline for gold, which lost the support zone of $1,800, hitting a low of $1,790.  Gold price ($/g) has fallen below $58 per gram - 1h chart from Kinesis Exchange From a technical point of view, the gold price has returned to the former lateral channel between $1,760 and $1,800, as investors await new catalysts. Any further hawkish indication from the Federal Reserve could trigger a negative impact on gold, while a slowdown of inflation growth (or any other suggestion of a push towards rate hikes) could be a positive market driver for gold.  Kinesis Money Silver Analysis During yesterday’s trading session, the rebound of bond yields generated a sell-off on silver, which lost 4%. The spot price of silver has now plummeted from $23 to $22.1, now approaching the support zone of $22.  The technical scenario for silver appears relatively fragile. A break-down of the support area of $22, will open space for a further decline to the next key level, placed at $21.5. This has been, importantly, the lowest level reached by silver in the last 18 months. Find out more about what Kinesis has to offer Learn More Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.

Carlo Alberto De Casa
Carlo Alberto De Casa

07/01/2022

Gold & Silver Market Analysis for Wednesday 5th January

Kinesis Money 2021 Summary and 2022 Outlook for the Year Ahead To summarise last year, there are some pivotal topics that should be mentioned. Among these, it is important to consider the continued bullish trend of stocks, with the S&P 500 up year over year (YoY) by 26.9%, and over 28% accounting for dividends. In addition to this, many commodities have achieved significant gains.   Another crucial topic to cover here is the monetary policy of central banks. In summer 2021, the Federal Reserve started preparing the markets for the impending tapering process, otherwise understood as the reduction of the liquidity in the system. This was later announced in November of last year.  In December, the U.S. Central Bank increased the speed of the tapering process with the target of its completion by the end of March 2022 - instead of the original plan for June 2022. This year, the number of rate hikes is expected to increase from one to three.  As a result of the tapering process, the greenback regained strength last year, with the US Dollar index recovering 96 points. Meanwhile, the EUR/USD trading pair fell to 1.13.  The appreciation of the American currency, the “dominant dollar”, was also favoured by the unchanged dovish attitude of the European Central Bank. However, December was witness to the conflict between Miss Lagarde’s confirmation that inflation was expected to be transitory and Jerome Powell’s statement that US price growth was no longer a transitory situation. So, what should we expect for 2022?  The few topics already mentioned are likely to remain central this year, and it seems they are strictly linked. Monetary policies could curb inflation, slowing down the rally of some industrial and agricultural commodities. On top of this, the US 10 years treasury yield notably finished 2021 in the region of 1.50%, before jumping to 1.65% in the first two trading sessions of 2022. The movement of the US 10 year bond yields is certainly an indicator of inflation expectations for the next few years, and should be closely monitored. Commodities in 2021 As mentioned, 2021 was the year of the commodity sector, especially the energy sector. Both WTI (West Texas Intermediate, the benchmark of US oil) and North European Brent rose by more than 50%. In addition, natural gas achieved a similar performance, despite experiencing greater volatility. During late summer, the price was up 120% YTD, before slowing down in the final quarter of the year. Another extraordinary performance was achieved by coffee, which jumped by 76%. Among agricultural commodities, cotton rose by 44% and wheat by around 22%. Furthermore, the performance of industrial metals was positive, with copper up by 23%, nickel by 26% and zinc by 30%. Even better than this was steel, which jumped by 40%. All this, of course, exacerbated the effects of inflation, generating various problems in the supply chain.  The scenario, as it will be pointed out, has been different for precious metals.  Precious Metals in 2021 In 2021, precious metals were one of the few raw materials down last year. Gold posted a loss of almost 4%, while silver declined by 11%. Palladium, despite the massive gains seen during previous years, lost around 20% last year. It should be pointed out that the negative performance of gold must be contextualised within the main macroeconomic scenario. Many investors still preferred betting on stocks, in an attempt to achieve quick gains.  In 2021 we saw a hawkish Federal Reserve, with a growing number of rate hikes expected for 2022 - a factor that could implicitly make holding gold more expensive.  Unlike in 2013, when the announcement of tapering generated a “taper tantrum”, the reaction of gold twas composed in 2021 with a drop of only a few percentage points, confirming the resilience of bullion to various market scenarios. Gold chart from Kinesis Exchange - $/g - 1h timeframe Kinesis Money Gold Analysis In 2021, the gold price started with a decline from $1,830 to $1,800, after the recovery of US bond yields. Within the support zone of $1,800, we have seen buyers being very active, and the price now recovering to $1,815. From a technical point of view, a new positive signal would be highlighted with the surpassing of $1,830. However, a decline below $1,800 could bring the gold price back into the lateral channel of $1,760 and $1,800. Analysing the price in dollars per gram, bullion remains traded above $58. Find out more about what Kinesis has to offer Learn More Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.

Carlo Alberto De Casa
Carlo Alberto De Casa

05/01/2022

The Investors Guide to Gold and Silver in 2022

Gold has traditionally played a key role in the financial sector, becoming the most common safe haven in market storms. Its crucial role in a financial portfolio remains unchallenged and it seems very likely to continue for a long time. Gold represents stability, with central banks increasing their holding of bullion as reserves. Despite this, investors are always fighting against the markets while trying to find the best timing for buying bullion.  Another interesting point of analysis is the distinction between buying physical gold or paper gold and what are the advantages of both. This article starts explaining the current scenario for bullion, before analyzing the market drivers which are forecasted to move the gold price in 2022. The analysis continues presenting the advantages offered by Kinesis Money to gold investors.  What is the current state of the market? In the last few months, investors faced a challenging scenario. The Federal Reserve announced the beginning of tapering, while inflation continued to soar in the U.S. and in several other countries, proving to be much less transitory than forecasted by Central Banks. Moreover, the battle against Covid-19 is not yet over, with spikes of volatility due to the news related to the pandemic. Despite this, stocks continued their long rally that started in April 2020, with the market capitalization of almost all the major indices now surpassing pre-Covid-19 records. For example, the S&P 500 has reached the 4.700 points mark, around 900 more than the top of February 2020, while the Dax topped above 16,000, before slowing down after the growing fears related to the new Covid-9 variants. On the bonds market, the yield of the U.S. 10-year treasuries remains in the region of a modest 1.50 – 1.70%, well below the current level of inflation. But the scenario could change if inflation pressure continues to rise, or in the case that investors sense a risk that the price growth seriously goes out of control. Once again, gold seems ready to play a crucial role in the markets. Investing in Gold in 2022 There are not many certainties in the financial environment. However, it is certain that gold will continue to be a crucial asset for an investor’s portfolio, despite potential changes in the market. Why invest in Gold in 2022? The reasons for holding gold might be various and at times - complementary. Firstly, consider investing in gold in anticipation of its price rising. By holding your gold long-term, you can expect to achieve a capital gain as the price of bullion increases over time. 1. Gold is an appreciating store of value Charts speak for themselves, especially in a longer timeframe: Gold Chart from 1971-2021 - Gold climbs from $35 to $1,800 Over the past 50 years, gold achieved an average yearly performance of +10.6%, while in the last 20 years bullion price increased by 600%. The former historical top of 2011 at $1,920 was surpassed in the summer of 2020, when gold temporarily jumped above $2,000, before slowing down to $1,800/1,900. 2. Gold is a Safe Haven Another reason to incorporate gold into a portfolio is to protect yourself in the event of stock market turmoil. Historically, bullion has proved to be an excellent safe haven in the unfortunate scenario of share market collapse. An example of that was observed throughout the global stock market crash in February 2020, when gold managed to retain a positive performance (excluding the first chaotic weeks of March, where many traders were forced to close their position in gain on gold, in order to avoid margin calls on stocks and bonds). 3. Don’t put all Your Eggs in One Basket Holding gold is an excellent way of diversifying a portfolio, in line with the wise advice of Don Quixote. Gold is a unique commodity, with a low correlation to the majority of raw materials - and can also be used to mitigate potential risks. 4. Gold is a Hedge Against Inflation and Market Adversities Speaking of risk, bullion is well-suited to play an important role in the event of currency market turmoil. Central banks printed trillions of dollars, euros, pounds and yen in the last few years. As we try to crawl back to so-called normality, the Fed’s hawkish monetary policies might not necessarily make it any easier.  If investors lose their trust in central banks, gold could definitely jump to new highs. Therefore, its safe-haven role is also remarkable when analyzing the forex market. For investors, based in countries where the local currency is extremely volatile - as in Russia, India, or Turkey for example - gold could also be used as a hedge against further depreciation of the native currency. Moreover, bullion could also be held as a hedge against inflation. However, this subject may turn out to be a little tricky, as the relationship between gold and inflation is not always linear. What are the main market drivers for gold in 2022? Any gold price forecasts for 2022 should take the inflation rate and the Fed’s monetary policy into consideration. Of course, the development of the pandemic should be carefully monitored.  Now, let us analyze the main elements for gold investing in 2022, in more detail: 1. The Federal Reserve’s attempts at curbing Inflation Despite the Federal Reserve’s tapering announcement, gold managed to perform positively in October and November 2021. This happened mostly due to growing fears around uncontrolled inflation, which remains a central topic as we enter the new year. Indeed, in the event of investors losing their perception of central banks having enough control over price growth, a gold buying spree may ensue. Therefore, inflation and the central bank’s decisions over interest rates are two crucial market drivers for the gold sector. 2. Gold-backed ETFs In recent times, the demand for gold coming from physically-backed ETFs, has shown a strong correlation with the gold price. The growth in this sector could further boost the price of gold, in case the inflows continue. Price of Gold & ETF demand - From the World Gold Council (WGC) 3. Growing Demand for the Physical Gold In the last decade, we have seen strong demand for physical gold coming from central banks. Many countries, including Russia, China or Poland, vastly increased their gold reserves. It will be interesting to see whether this trend will continue in the next few years. Jewellery historically represents a strong percentage of physical gold demand. In this case, analysts are trying to forecast the solidity of jewellery sector demand for 2022-2025, and its potential impact on the bullion price. What are the key levels for the gold price in 2022?  If we take a look at the 2019-2021 gold price chart, we can identify many interesting support and resistance points that can later aid us in monitoring the year 2022. Gold Price - from 2019-2021 Let us start with analyzing the key resistances - the areas which can curb gold appreciation, and where we could expect sellers to be more active.  In the current scenario, with bullion traded at around $1,800, the first major level to monitor is placed at $1,870, on the top reached in November 2021. A surpass of this threshold could generate a further rally to the historical 2011 top in the region of $1,920, while the following key levels to monitor would be the psychological $2,000 mark which led to the historical high in July 2020, at $2,074. Similarly, in case of a new decline, the support zones - where we could expect significant buying volumes - are placed at $1,750 and also in the $1,670-$1,680 region. Much further, we can find $1,620 and the $1,520 - $1,500 area. How to Invest in Gold in 2022?  As many investors are looking for the perfect way to invest in gold, it’s important to make an informed choice between options available on the market. What are the differences between physical gold and paper gold and are there any emerging alternatives to these two choices? Paper and Physical Gold - What are the Key Differences? Physical gold has the advantage of tangibility, however paper gold is usually much cheaper in terms of spreads and commissions. Moreover, it is also easier and quicker to buy and sell. Thanks to modern trading platforms, it is possible to purchase and sell paper gold in just a few seconds, profiting from both short and long-term bullion movements. Fully Allocated, Digitalised Physical Gold Conclusively from this analysis, precious metals backed digital currencies - such as Kinesis KAU & KAG - could represent the perfect solution for modern investors. Kinesis native currencies merge both the enduring value and security of traditional physical gold with the technology-driven liquidity and ease of paper gold. Kinesis offers two tokens: Kinesis gold (KAU) and silver (KAG), which can be easily traded online. At the same time, the precious metals that back them are stored physically in Kinesis vaults and can be redeemed in physical bullion anytime, anywhere around the world. Moreover, Kinesis is paying KAU and KAG holders a recurring monthly, passive yield, which is paid directly into the holder's account in gold and silver. The Kinesis system also offers a sense of immediacy. Holders who store their gold with Kinesis, have the ability to spend, send and transfer their KAU and KAG as digitalised, physical currencies, just like regular cash. To summarise, with Kinesis Money assets, investors can access the benefit of receiving a monthly yield, traditionally associated with bonds, coupled with the potential growth of the physical gold price. Moreover, they can trade Kinesis gold just like paper gold, while also having the option of converting the Kinesis token into physical gold, whenever they wish to do so. https://www.youtube.com/watch?v=Q2ldZFJjii4 Investing in Silver in 2022 It’s not just gold that glitters.  In the precious metals environment, silver could also represent an interesting opportunity to diversify an investor’s portfolio. Silver metal is generally more volatile than gold, with wider movements in both directions. In other words, during the positive growth phases, silver can gain more value than gold (in percentage), while falls can also be broader. Many precious metal analysts, including the renowned Robert Kiyosaki, have a positive view of silver. Although its price seems to have been dramatically compressed in the last few years, with the rapid popularisation of physical silver - which is also reflected by the accelerating expansion of silver-focused online communities, such as Reddit-based WallStreetSilver - this could be the right time for the metal to start restoring its real market value. Silver price - from 2019 - 2021 The global physical demand for this precious metal is expected to grow in the future. In the last decade, we have already seen a tremendous increase in the industrial silver demand from the photovoltaic sector. In the upcoming years, analysts have forecasted a huge increase in the request for silver as a component in electric vehicles. Of course, this could have a strong impact on the silver price, increasing the chances that silver can outperform gold in the long run. Gold Vs. Silver Demand It is interesting to analyse the different uses of these two precious metals.  Gold is mostly used in jewellery and has a significant component of the demand coming from central banks and the investment sector.  Silver, on the other hand, is more exposed to the industrial demand and this could also represent an interesting point allowing investors to diversify their investment in silver. Both precious metals are equipped with a number of benefits that will make an excellent addition to any investor’s portfolio. However, the decision between gold or silver, as well as the form in which you find them most fitting your personal needs - is entirely up to you. * This article will be updated in line with market trends and advice throughout the year.

Carlo Alberto De Casa
Carlo Alberto De Casa

21/12/2021

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