This week, Bank of America research analysts reported that $31.5 billion was put into equities while as much as $1.8 billion was pulled out of gold during the week ending on March 10.
But looking a little closer… investors fleeing from gold might want to consider looking for sanctuary somewhere other than just stocks.
Demand and prices for the battery material cobalt are soaring as electric vehicles stream out of showrooms in China and Europe, with very little prospect of a significant reversal as drivers and governments move to cut carbon emissions.
The price of the metal stands at $53,000 per tonne, up 65% this year and around its highest since December 2018, having been as low as $25,000 in 2019 due to a global market surplus.
Payables – a reference to the percentage of the cobalt metal price used to price hydroxide, a feedstock for electric vehicle (EV) batteries – are up at around 93-94% from about 63-69% a year ago, analysts from Benchmark Mineral Intelligence said:
“Primarily the price rise has been driven by real demand, largely due to the rapid increase in sales of EVs,” said Benchmark’s head of price assessment Caspar Rawles.
“Ultimately, the overall price trend is up, although we may see some volatility.”