Contract Revenue is $300,000USD Plus 5 Year Management Program Revenue Fees
SlapItOn is owned by an elite group of professional athletes including Mike Vanderjagt,Troy Aikman, Mike Modano, Johnny Damon, Steve Smith and Cobi Jones.
Why ImagineAR?
(IP:CSE) (IPNFF:OTCQB)
ImagineAR Has Already Started Commercializing Its Augmented Reality Platform
Clients Include:
NBA Sacramento Kings
Mall of America
AT&T Shape
Basketball Hall Of Fame
Milwaukee AutoShow
Microsoft Authorized Co-Sell Partner
Closed Major Financing In Q1 2020
Enables businesses of any size to create and implement their own AR campaigns with no programming or technology experience
ImagineAR is now well positioned to further commercialize and capitalize on massive demand for Augmented Reality
WHAT IS AUGMENTED REALITY?
AR is going to dominate our daily lives sooner than you think. Why else do you think Tim Cook is so bullish? But it’s still a new concept that most people haven’t seen yet, so let’s use a basic example.
An ImagineAR client (i.e. Sacramento Kings) tells its fans to simply point their mobile device at something (i.e. Sacramento Kings Logo) and watch their phone come to life (i.e. a player posing for a picture, a mascot dancing, collecting a reward – the possibilities are endless).
The result is that mobile phones can now be used to engage fans way beyond simple social media by bringing their worlds to life. In the Sacramento Kings example above, fans at home can do the exact same thing and have a player appear right in their living rooms!
ImagineAR clients can use logos, signs, buildings, products, landmarks and more to instantly engage with videos, information, advertisements, coupons, 3D holograms and any interactive content.
The best part? Customers don’t need a big, expensive tech team to deploy ImagineAR. The Company’s “AR-as-a-Service†Platform enables businesses of any size to create and implement their own AR campaigns with no programming or technology experience.
WHAT IS THE DIFFERENCE BETWEEN AUGMENTED REALITY AND VIRTUAL REALITY?
We knew some of you may have been thinking this, so here’s a quick and easy answer.
AR uses your existing environment and overlays new information (as in the example above).
VR creates a completely new virtual environment (i.e. a sci-fi fantasy world).
SEEING IS BELIEVING!
Now that you have a baseline understanding of the power of AR, the next thing to do is see it for yourself. Watch these videos of ImagineAR in action and with some really happy users.
Posted by AGORACOM-JC
at 11:50 AM on Tuesday, April 28th, 2020
(TSXV:EYC) | (OTC:EYCCF) | (2EYA:GR)
Trusted and used by some of the world’s top professional sports teams, including:
Why Eyecarrot?
Eyecarrot Has Already Started Commercializing Its Vision Therapy Platform
Clients Include:
Dallas Stars (NHL)
Chicago Cubs (MLB)
Sporting KC (MLS)
Tennis Canada
Showcased During NFL Scouting Combine
Company’s Vision Therapy Products Used In:
Over 1,500 Practices
20 Countries
Flagship “Binovi” Is State-Of-The-Art Platform
Measures 14 Key Vision Skills
Essential For Maximizing Brain Performance
Shipped Over 400 Binovi Units (April 2020)
Goal Is 2,500 Binovi Units (End Of 2020)
Signed Sports Vision Partnership With Eli Wilson Goaltending
World Leader In Goaltending Development
600 Active Goaltending Camp Participants
50,000 Global Aspiring Goaltenders
Closed Major Financing In Q1 2020
Eyecarrot is now well positioned to further commercialize and capitalize on massive demand for Vision Therapy and Training For Athletes and Education
WHAT IS VISION THERAPY AND TRAINING?
1 in 4 people on the planet have vision problems that go beyond simply not being able to read those letters on the wall and requiring a prescription.
What your eyes see doesn’t always match up with what your brain sees. Eyecarrot synchronizes your eyes and your brain to deliver maximum performance for athletes and students.
The Company’s flagship product – Binovi – is a platform that measures 14 key vision skills essential for maximizing brain performance. Maximizing brain performance leads directly to making faster and better decisions, which directly correlates into an athlete or student’s best possible performance.
Result? Binovi delivers the performance edge everybody covets.
More than just words, Binovi is already being used by many professional sports teams and has been tested by more than 1,500 vision performance professionals in over 20 countries.
As a result, Binovi is quickly becoming an industry standard in the sports performance and vision rehabilitation markets.
SEEING IS BELIEVING!
Now that you have a baseline understanding of the power of Eyecarrot, the next thing to do is see it for yourself. Watch this videos of Eyecarrot and Binovi in action, with some really happy users.
Market Research Survey Finds Over 60% Positive Purchase Intent For Else Product
Fills A Market Gap In Plant-Based Toddler Nutrition (12-36 months)
Subsidiary Of Billion Dollar Hong Kong Listed Conglomerate (H&H) Owns Approx 11.15% Of BABY
H&H Shares Have Voluntary 12-Month Hold
H&H Right To Maintain 11.15% Ownership Through Future Financings
Patented World’s First 100% Plant Based, Non-Dairy, Non-Soy Baby Formula
Here’s What The Experts Say
“Finally a high quality, nutritionally-dense, tasty, plant-based alternative that is low in sugar. Else is filling a much needed gap, and providing an alternative for those looking to avoid dairy or soy, and a viable option for intolerances and other diet considerations.”
Nicole Silber, RD, CSP, CLC
Dairy-free, soy-free, plant-based nutrition for babies and toddlers
Else Nutrition (formerly INDI) won the “2017 Best Health and Diet Solutions” award at the Global Food Innovation Summit in Milan.
Posted by AGORACOM-JC
at 9:50 AM on Tuesday, March 17th, 2020
(NAM:TSXV)
A Green Metals Company
New Age Metals has two divisions which focus on the exploration and development of green metals: Platinum Group Metals and Lithium
i.) PGM Division: focus on development of the 100% owned River Valley PGM Project.
ii.) Lithium Canada: focus on exploration of hard rock lithium, in Manitoba, Canada.
Eric Sprott is a strategic shareholder and has an 18.56% ownership of the Company’s current issued and outstanding shares on a post conversion beneficial ownership basis
Largest 100% owned undeveloped primary PGM project in North America, Palladium is the main payable metal accounting for 65% of revenue stream based on 2019 PEA.
1:0.4 (Pd:Pt).
Excellent infrastructure and within 100 kilometers of the Sudbury Metallurgical Complex.
NI 43-101 Mineral Resource Estimation Q1 2019.
PEA Q3 2019.
2020 plan to follow up on PEA recommendations.
Preliminary Economic Assessment demonstrates positive economics for a large-scale open pit mining operation.
PEA Highlights (CDN$):
Life of mine (LOM) of 14 years, with 6 million tonnes annually of potential process plant feed at an average grade of 0.88 g/t Palladium Equivalent (PdEq) and process recovery rate of 80%, resulting in an annual average payable PdEq production of 119,000 ounces.
Pre-Production capital requirements: $495 M.
Undiscounted cash flow before income and mining taxes of $586M.
Undiscounted cash flow after income and mining taxes of $384M.
Average unit operating cost of $19.50/tonne over the life-of-mine.
Potential for up to 325 jobs at the peak of production.
Using March 11, 2020 spot Palladium price (US$2,275/oz) River Valley Project After-tax IRR is 30% and After-tax NPV (5%) is $C858M.
Figure 1: River Valley Project site map including results from the 2019 Mineral Resource Estimate by zone.2020 River Valley Project Exploration & Development Plan
Management has developed a three-phase exploration and development plan for the balance of 2020.
Phase One will focus on drilling to expand the boundaries of the Pine Zone discovery and to generate rhodium data for future mineral resource estimations.
Phase Two will involve drill testing further geophysical targets in the Northern area of the project, identified in the 2017/2018 induced polarization surveys. The target areas to be drill tested in this program are outlined in Figure 1.
Finally, Phase 3 will be focused on metallurgy – with the primary objective being to improve process recoveries of platinum metals, particularly palladium and including rhodium. We plan to start Phase 1 in early Q2-2020.
Note that each phase is contingent on success from the previous phase.
On April 18, 2018 New Age Metals acquired the Genesis Platinum Group Metals Project.
Figure 3: Genesis Project location map. The road accessible Genesis PGM-Cu-Ni Project adjacent to Richardson Highway and 138 kv electric lines. The project is 460 road kilometers to Fairbanks, Alaska and 120 road kilometers to the all-weather port city of Valdez
The Genesis project’s PGM-Cu-Ni mineralization is hosted in the Tonsina mafic-ultramafic complex, an undrilled, virtually unexplored layered mafic-ultramafic complex. Recent petrology indicates the Genesis mineralization is similar to the Stillwater and Great Dyke complexes.
Known PGM mineralization covers a distance of 9 km across the prospect.
The Genesis PGM-Cu-Ni Project is an under explored, highly prospective multi-prospect drill ready property that warrants follow-up drilling, additional surface mapping, sampling to expand the known footprint of mineralization and to determine the ultimate size and grade of the layered mineralization outlined to date.
The stable land status, ease of access and superb infrastructure make this project prospective for year-around exploration, development and production.
Summer 2019 exploration efforts doubled the strike length of prospective mineralization at our road accessible Genesis PGM-Ni-Cu Project in Alaska.
Currently, New Age is seeking an Option/Joint Venture Partner to assist in the exploration and development of this project.
New Age Metals is the largest mineral claim holder in the prolific, Winnipeg River – Cat Lake Pegmatite Field. All of the claims are held by Lithium Canada Development, a 100% owned Lithium Division of New Age Metals. The company presently has eight Lithium Projects in the region which are along strike of the Tanco Pegmatite and the claims encompass several pegmatite groups.
Situated around the Tanco Mine which in 2019 was acquired by Chinese miner Sinomine, the projects are located 140 kilometres northeast of Winnipeg, Manitoba.
Three of the projects are considered drill ready. Lithium One, Lithium Two and Lithman West
Active exploration of the claim holdings is ongoing.
New Age Metals has signed an exploration agreement with the Sagkeeng
First Nation in regards to the exploration and development of any of
the company’s claims that are located on traditional Sagkeeng
territories.
The Tanco Mine was one of North America’s only producers of
Tantalum, Cesium and Lithium minerals (Spodumene), with the mine opening
in 1969. Owned by the Cabot Corporation as of 1993 until 2019, when
Chinese miner Sinomine purchased from Cabot for US$130M.
Presently the Tanco Mine produces Cesium Formate, a completion fluid for the petroleum industry.
Management is actively seeking a qualified
and dedicated Option Joint Venture Partner to assist in the exploration
and development of these highly prospective projects.
BREAKING: Signed $20,000,000 Letter of Intent To Acquire Venom Extracts (“Venomâ€)
HIGHLY ACCRETIVE $20,000,000 ACQUISITION
Venom Highlights
2019 Est Revenue ~C$16.4M; EBITDA ~C$2.48M
30% Of Acquisition Price Paid If Venom Revenues Hit $30,000,000 and $40,000,000 By DEC 31, 2021
Average revenue per gram YTD 2019 $CDN 14 and will continue to increase as vape cartridge mix grows ($CDN 30 per gram)
One Of Arizona’s Largest Producers Of Award-Winning Medical Cannabis Distillate
Acquisition Expected To Close By March 31, 2020 Subject To Due Dilligence
An established brand in Arizona for high quality
products in the wholesale and distillate marketplace. Venom is
leveraging its brand and success to aggressively expand into other US
states.
ACQUISITION TERMS
Hollister will acquire Venom Extracts for CDN$20,000,000 via Hollister stock
The stock price will be determined based on the greater of:
The 14-day VWAP (Volume Weighted Average Price) capped at $0.25 subsequent to announcing the transaction and $0.20
Once share price is established, 70% of the Payment Shares will be issued upon closing of the transaction
Remaining
30% of the Payment Shares will be issued when and if the following
milestones have been met on or prior to December 31st, 2021
Hollister Highlights Of Current Operations:
Hollister’s products are now present in 220 of 600 California dispensaries.
Vision is to capitalize on this success to become the sought after
premium brand portfolio of Cannabis across multiple states and Hemp
nationwide
Major LOI, Joint Ventures and Licensing Agreements Support Proof Of This Vision
“Easy Riders” – Milliions Of Global Followers
“Tactical Relief” – Veteran Founded, Hemp Based CBD Brand With Nation Wide Members
“Tommy Chong” – Exclusive Manufacture & Distribution Of Tommy Chong’s Cannabis (TM) Full Spectrum Elixir 1:1
“I only partner with the best-in-class companies and I am really
pleased to have the Hollister Cannabis Co. bring their amazing Tommy
Chong’s Cannabis™ Full Spectrum Elixir to the market for me”.
– Tommy Chong
KEY JOINT VENTURES AND PARTNERSHIPS DETAILS
LOI for a proposed offtake agreement with Mountain Financial Solutions LLC
Hollister will purchase 1,000 pounds of hemp from Mountain Financial
(unique high CBD hemp strains ) for use in various smokable hemp
products – specifically, Rebel Hemp Company’s premium hemp pre-rolls.
Licensing agreement with Tommy Chong to manufacture and distribute Tommy Chong’s Cannabis™
Full Spectrum Elixir 1:1.
The tincture, features a 1:1 ratio of THC to CBD, recognized for its medicinal properties
Distributed exclusively by Indus and is anticipated to be in-dispensaries throughout California by March 01, 2020.
Anticipating producing up to 25,000 units of during the 1st 12 months with an estimated retail price of $70 per unit
LOI with ER71 USA Inc. (“Easyriders”) an iconic brand with millions of followers globally, have entered into LOI to complete a joint venture agreement
Upon completion of the Joint Venture, Hollister and Easyriders will
collaborate on the development and marketing of co-branded hemp based
everyday premium product lines.
Pre-rolled products using hemp
JV will further explore the development and marketing of additional product SKU’s for hemp-based
Edibles
Vapes
Topicals
beverages.
Revenue generated on the co-branded product lines will be shared 50:50 between Easyriders and Hollister.
Hollister Biosciences Inc. and Veteran Based Tactical Relief Enter into Letter of Intent for Proposed Joint Venture Agreement
Upon completion of the Agreement, Hollister and Tactical Relief will collaborate on the development and marketing of cannabis tinctures throughout the California market
Branded under Tactical Relief, the first cannabis tincture to be
manufactured will feature a 20:1 ratio of THC to CBD, recognized for its
medicinal properties in treating PTSD
Will be distributed exclusively by Hollister’s distribution partner, Indus Holdings Inc.
Hollister Currently Manufactures The Following Products:
hash
hash infused products
tinctures
crumble infused products
Pre-rolls
Vape Products
Pet CBD
Cannabis Concentrate
Brewed Hemp Beverages
Premium Hemp Pre-Rolls
other cannabis products
HashBones
Hashbones are a pre-roll made from 75% cannabis flower blended in small batches with 25% bubble hash
Results in a more potent pre-roll, also maintains the integrity of the cannabis
Terpenes are preserved in the bubble hash production process
Bubble hash is made without solvents or chemicals and is one of the cleanest concentrates available on the market
Hollister’s trusted and highly rated brand of pre-rolls, sold via third-party retailers
Mighty Meds
Acquired Mighty Meds as its vape brand
Company’s vape products are manufactured from pure THC distillate
and plant-based terpenes and do not use any additives that have been
linked to health issues.
San Diego based
Produces discreet, disposable, health conscious vape cartridges and other products
Purity Petibles
Purity Petibles 20:1 CBD pet tincture is manufactured using full
spectrum CBD, organic MCT Oil derived from coconuts and chicken flavor
The MCT Oil and chicken flavor used in Purity Petibles is food grade
Rebel Tea
Brewed with high-quality, American-grown
hemp and containing fifteen milligrams of whole-plant full-spectrum
phytocannabinoids, Rebel Tea offers consumers a refreshing THC-free
beverage. Rebel Tea’s innovative formula features exclusively organic
ingredients paired with light flavoring from natural lemon and cane
sugar.
NanoPure
NanoPure, nano-emulsified cannabis concentrate which will be sold both:
Wholesale as an ingredient for other companies and
power products for Hollister Cannabis Co.
DISTRIBUTION
Hollister has an exclusive distribution agreement in place with Indus Holdings (CSE: INDS).
Indus is the licensed California distributor that operates the WAYV platform.
Indus currently manages all of Hollister’s product fulfilment
obligations, allowing Hollister to focus its efforts on production and
marketing.
Indus provides Hollister with full brand representation by utilizing
its 15 sales reps to represent Hollister’s product to the California
marketplace.
Through Indus, Hollister’s products are now present in 220 dispensaries throughout California.
US CANNABIS MARKET STATS
CALIFORNIA CANNABIS MARKET STATS
HEMP
The Company intends to move into the hemp market. While cannabis is
still restricted by state regulations, CBD is not. We plan on leveraging
the brand by distributing hemp and CBD versions of our products
nationwide. We will strive to have the Rebel Hemp Co brand touch every
corner of the country.
CORPORATE STRUCTURE
Hollister develops quality branded cannabinoid-based and hemp-based
consumer goods and products for large-scale distribution through two
companies: Hollister Cannabis Co. and Rebel Hemp Company.
Posted by AGORACOM-JC
at 2:30 PM on Friday, August 9th, 2019
(CSE: CBDT) (Frankfurt 8EC) (OTC: EPWCF)
Why Empower Clinics
A leading owner/operator of physician staffed health and pain management clinics.
Patient database of over 165,000 patientsÂ
Proprietary technology platforms including Electronic Health Records portal and e-Commerce for CBD product distribution
Launching CBD extraction facility
First extraction system capacity = 6,000 Kg per year.
CBD based products are poised to be a $20B global industry by 2022
Medical cannabis is poised to be a $100B global industry by 2025
Recent Acquisition of Sun Valley Certification Clinics Holdings LLC
Created one of the largest clinic groups in the medical cannabis sector in the United States
Twelve (combined) clinic locations
Combined patient count of 165,000 patients
Platform generating $5MM USD in revenue annually (2020)
Operating in Washington, Oregon, Arizona, Nevada and California
According to the Brightï¬eld Group report the CBD market in the U.S. has grown over 700% in 2019
The CBD industry is becoming much more
saturated than it was before the passing of the U.S. Farm Bill late last
year, with new products entering the market, threatening to take a
slice of the CBD pie that the early producers of CBD have enjoyed until
this time.
Nevertheless, the top 20 CBD companies still hold a majority of the even bigger pie that is CBD in the cannabis industry.
Technology
Developed proprietary software to manage patients through the medical cannabis process
A HIPAA compliant Electronic Health Record (EHR) system and patient management portal.
Tele-medicine platform to serve and treat patients remotely.
Launching an e-Commerce platform for it’s Sollievo and Sun Valley CBD product lines.
Products
Commenced selling its proprietary line of CBD-based products called SOLLIEVO
Empower’s patient base and customers are
expected to benefit from access to high margin derivative products,
including CBD lotion, tinctures, spectrum oils, capsules, lozenges,
patches, e-drinks, topical lotions, gel caps, hemp extract drops and pet
elixir hemp extract drops.
Patients and customers will be able to access Empower’s home delivery and e-commerce platform.
CBD Extraction
Opening first CBD Extraction facility in Portland, OR.
5,000 sq. ft. leased building with first extraction system capable
of producing 20kg per day of 99% spectrum oil, isolate or distillate
Current wholesale pricing is $6,500 USD per kg with annual capacity of 6,000kg an estimated $39MM USD revenue.
Facility can scale to four extraction systems for up to 24,000kg of product and over $150MM USD revenue
Franchising
Completed it’s 2019 Franchise Disclosure Document (FDD) and has commenced selling Sun Valley Health franchises in the United States.
Company is now selling Sun Valley Health franchises and is accepting franchise applications effectively immediately.
Invested in the development of a new
franchise trade show booth that showcases the Sun Valley Health
opportunity to perspective franchisees using dynamic, content rich
displays and four large format television monitors to present features
and benefits.
Posted by AGORACOM-Eric
at 4:18 PM on Monday, July 22nd, 2019
Estimates point to 2022 as equilibrium between Electric and Combustible Sales
Graphite anode demand is set to increase from 194,160 tonnes in 2017 to 1,080,360 tonnes by 2023 and 1,747,800 tonnes by 2028
Automakers are taking action to put millions of electric vehicles on the road
Quebec and B.C Governments dedicated to “Green Economy”
Lomiko Metals Inc. has
been keenly watching the lithium-ion battery market in anticipation of
identifying an opportunity to participate in the supply of materials for
electric vehicles with its La Loutre graphite project located in
Quebec, Canada. Lomiko is focused on advancing the La Loutre graphite
property and is looking to deliver an NI 43-101 graphite resource based
on the success of its recently completed drilling campaign at the
Refractory Zone. This will add to the previously announced 43-101
graphite resource at the adjacent Graphene-Battery zone announced March, 2016.
A. Paul Gill, CEO states, “Lomiko
believes that it is in an ideal position to participate in the
burgeoning Electric Vehicle market, with the potential to become a North
American supplier of graphite materials, a market currently dominated
by foreign supply from China. Graphite is a major and critical material
in the manufacture of lithium-ion and other batteries, specifically
battery anodesâ€.
According to Benchmark Minerals, graphite anode demand is set to increase from 194,160 tonnes in 2017 to 1,080,360 tonnes by 2023 and 1,747,800 tonnes by 2028. [Source: INN Graphite Investing News] On February 4, 2019, Simon Moores of Benchmark Mineral Intelligence raised supply and demand concerns in a submission to the US Senate which was echoed by Energy and Natural Resource Committee Chair Senator Lisa Murkowski in a February 5, 2019 News Release: “In contrast to the energy sector, our nation is headed in the wrong direction on mineral imports. This is our Achilles’ heel that serves to empower and enrich other nations, while costing us jobs and international competitiveness,†Murkowski said. Lomiko brought this crucial opportunity to the attention of shareholders in a February 8, 2019.
Recent announcements and cooperation agreements on electric vehicle and self-driving cars between Ford and Volkswagen indicates automakers are taking action to put millions of electric vehicles on the road. Raw material demand for graphite, lithium and nickel sourced from North American is likely to increase as a result. Ford said its battery electric vehicle rollout will start in 2020 with a performance utility, and it plans to launch 16 battery electric vehicles by 2022.
In other positive developments, Quebec Premier Francois Legault reiterated his commitment to make the Province the ‘Green Battery’ of North America through investments in electric buses and trams while British Columbia Premier John Horgan aims to eliminate all gas-powered cars by 2040.  For more information on Lomiko Metals, review the website at www.lomiko.com, contact A. Paul Gill at 604-729-5312 or email: [email protected]
Posted by AGORACOM-Eric
at 1:40 PM on Monday, July 22nd, 2019
SPONSOR: GGX’s Gold Drop property, situated in one of the most prolific gold-copper mining camps of North America, the Greenwood-Republic mining camp. The current 2019 drill program is following up on the 2018 drilling which intercepted high grade gold-silver results (129 g/t gold and 1,154 g/t silver over 7.28 meter) from the near surface COD vein which is projected to be 1.5 kms in length. Click here for more information
Central Banks Return to Gold
Central banks bought more gold in 2018 than at any time since the early 1970s
Bullion holdings rose by 651.5 tons last year, the most since 1971
In the 1990s, gold was an unloved asset among central banks. Reserve managers lent or sold their gold, particularly in Europe, and the gold price fell to a low of US$250/oz. Years of persistent selling triggered the Central Bank Gold Agreement of 1999, under which signatories agreed to limit collective sales to 400 tonnes per annum, put a cap on gold leasing and take a disciplined approach to gold futures and options.
The Agreement delivered two clear benefits: it helped to stabilise
the gold price and increased transparency around central bank gold
sales. Today, however, sentiment towards gold has been transformed and
gold has regained its status as a valuable and highly regarded reserve
asset.
In 2018 alone, central banks bought 651 tonnes of gold, up 74% compared to 2017 and the highest level since 1971.
Key Changes
A glance back over the past 20 years highlights some of the key changes in central bank behaviour.
First, central banks have rapidly and consistently added to their
foreign exchange reserves since the Asian crisis of 1998. Reserves are a
crucial element in a country’s armoury, providing protection against
both domestic and external shocks and acting as a show of confidence to
the outside world. Emerging market economies led the charge in this
respect, sending worldwide foreign exchange reserves from around US$3
trillion (tn) in 2000 to approximately US$13tn in 2014. Purchases have
plateaued over the past five years but still stand at some US$13tn
today.
The dollar is the most widely held reserve asset but, according to
International Monetary Fund statistics, gold comes third, accounting for
11% of global reserves. Having been net sellers until 2000, central
banks have been net buyers ever since. In 2018 alone, central banks
bought 651 tonnes of gold, up 74% compared to 2017 and the highest level
since 1971. Over the past decade, central banks have purchased more
than 4,300 tonnes of gold, taking their total holdings to around 34,000
tonnes today. The trend has continued in 2019, with net purchases
reaching 90 tonnes before the end of the first quarter.
Notably too, central bank buying has been geographically diverse. Russia
has been the most committed purchaser of gold – acquiring almost 275
tonnes in 2018, the largest amount ever purchased in a single year.
China has been consistently adding to its reserves as well, but many
other emerging market countries have been accumulating gold over the
past year and more, including Hungary, Poland, Egypt, Kazakhstan and
India.
The Drivers
What is the rationale behind this renewed interest in gold? First,
heightened uncertainty about the global economic and geo-political
outlook and second, gold’s intrinsic value as a reserve asset.
Ten years after the Global Financial Crisis, the macro-economic
outlook remains fragile and hard to read. In April, the IMF outlook
highlighted weakening GDP growth, with risks skewed to the downside. As
IMF Chief Economist Gita Gopinath explained, the global economy is at “a
delicate momentâ€. Advanced economies are predicted to grow by just 1.8%
in 2019 and 1.7% in 2020, while growth in the Euro area is expected to
be even lower, at 1.6% and 1.5% respectively. The emerging market growth
trajectory is more solid (4.4% in 2019 and 4.8% in 2020) but risks
remain tilted downwards.
Trade tensions are a major unknown. They have already had a negative
impact on growth and if the US and China do not reach a genuine truce,
the global outlook may worsen further. Fears of retaliation and
escalation may hit business investment, supply chains may be disrupted,
and productivity may slow across the world stage. The Euro area faces
specific challenges too. Business confidence is low, especially in
Germany due to the introduction of new fuel emission standards in the
auto industry. Fiscal policy is affecting Italian sovereign and
commercial bank spreads. And, of course, uncertainty about Brexit
persists, particularly as the exit date has now been postponed to
October 2019.
Furthermore, global geo-political risks have not abated and may have a
negative impact on economic activity. Idiosyncratic risks are
increasing too, such as the rise of populist governments in Latin
America and across Europe.
What is the rationale behind this renewed
interest in gold? First, heightened uncertainty about the global
economic and geo-political outlook and second, gold’s intrinsic value as
a reserve asset.
Gold Advantages
All these uncertainties accentuate negative market sentiment and
drive central bank investors to reallocate their portfolios away from
risky assets to safe haven assets.
This is where gold comes into its own, as it fulfils central banks’ three core objectives: safety, liquidity and return.
Gold is well known as a safe haven asset. It carries no credit risk,
has little or no correlation with other assets and the price generally
increases in times of stress. As such, it offers valuable protection in
times of crisis.
Gold is highly liquid too. It can easily be traded in global market
centres, such as London and New York. It can be used in swap
transactions to raise liquidity when needed and it can be actively
managed by reserve managers.
Gold can also enhance the risk/return profile of a central bank portfolio. Its lack of correlation to other major reserve assets makes it an effective portfolio diversifier and, over the long term, it delivers higher returns than many other assets.Â
