What Are the Downside Risks to Gold?

The video discusses the current dynamics in the gold market, highlighting the strong investment demand despite weak physical markets in India and China. It explores the potential risks of deflation over inflation in the near term and how these economic factors impact gold. The role of central banks in purchasing gold and their influence on the market is also examined, with expectations of continued net buying despite a slowdown.

What is the current state of the physical gold market in key regions like India and China?

• Unpredictable and volatile

• Weak and declining

• Strong and growing

• Stable with no change

What could potentially happen if investment demand for gold slows down?

• Upside risks will increase

• Downside risks will become more significant

• The market will remain stable

• Physical demand will increase

In the near term, what is considered a greater risk than inflation?

• Economic boom

• Hyperinflation

• Deflation

• Stagflation

What factor could create a supportive environment for gold prices?

• Positive real yields

• Negative real yields

• High corporate profits

• Strong economic recovery

From where do central banks typically purchase gold?

• From private collectors

• Directly from mines

• From other central banks

• From the open market