Lobo Tiggre: gold has a new buyer

In a recent interview with Kitco News, Lobo Tiggre challenged conventional wisdom about the rise in gold prices, which many attribute to ongoing geopolitical tensions, especially between Iran and Israel.
"Geopolitical tensions are in all the headlines right now. But gold has been rising for months now.... So I don't think both can be considered the root cause," Tiggre explained.
The analyst noted the emergence of new market participants, in addition to Central Banks around the world: "There is a new buyer in this market, but gold purchases by Central Banks have helped the yellow precious metal to stay at a high level".
This shift is significant and indicates a broadening of the demand base that could keep gold prices rising for a long time.
Gold highs
Turning to economics, Tiggre pointed out the deceptive nature of nominal highs when discussing gold prices.In his view, when adjusted for inflation, the true value of gold is much higher: "First of all, this is not a historical high. It's a nominal high. On an inflation-adjusted basis, even with the government nonsense of the U.S. consumer price index, the real all-time high is going to be above $3,400 or $3,500 an ounce."
This view is particularly relevant now that inflationary concerns are making themselves felt again.
"The sticky inflation story is really important. The Fed has signaled that it's going to cut rates. And, you know, Paul Krugman told us last year that we had beaten inflation. There was no problem and it's gone, over, done, over," Tiggre remarked, reflecting the current economic sentiment and its implications for gold.
The future of gold
As for the future, Tiggre remains bullish on gold, fueled not only by economic performance but also by a broader recognition of its value in times of crisis. He believes that even small changes in investor behavior can have a significant impact on gold demand and prices.
"If 1% of people around the world decided that an investment portfolio should include protective precious metals in physical form, it would double investment demand for gold."