Gold backed investment funds are gaining popularity among investors, raising both prices and risks … [+] for holders
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Gold fundamentals are rapidly changing as investment funds take market share from jewelry buyers and central bankers.
The current surge in gold prices has rewarded holders of the precious metal with healthy returns thus far in 2020, with prices approaching levels not seen since 2011. This is good news for current owners of gold and gold mining securities, but with reward comes risk. Those holding or acquiring gold at today’s elevated price levels need to understand that along with prices, volatility and financial risks will rise as well.
The demand for gold is changing, that is to say, the types of buyers of gold are different now than they were in the pre COVID-19 world. This shift in the demand side of the traditional supply/demand equation will result in more price gyrations and far less predictability in gold prices than perhaps ever before.
Traditionally, the top buyers of gold, in order by volume, have always been individuals in the general population via jewelry, Investors, Central Banks and Technology Companies. Jewelry purchases have generally dwarfed all other gold purchase categories combined.
It is important to understand that individuals and Central Banks typically buy gold and hold it for long periods of time. Central Banks buy gold to fulfill economic and strategic policy goals, and individuals usually buy gold out of cultural tradition and custom. Technology companies buy gold to fulfill their manufacturing needs. In all three cases, gold is purchased when it is needed, usually regardless of price. In these instances acquisition is the intent, and there is generally no plan or intention to ever sell.
These buyers won’t sell their gold just because the price rises; they will sell because of economic necessity, not because of absolute price. They provide steady, mostly non-speculative demand for gold, which, over time, can tend to limit, or at least diminish, gold’s price volatility.
Gold investors, however, behave differently. Investors are not buying gold to fulfill any policy objective, like a central bank, nor are they buying gold to mark a special event in life, nor or they manufacturing anything. Gold investors have no objective other than to profit financially from their purchase.
The advent of Exchange Traded Funds backed by gold has enabled Investors to access gold markets easily and quickly. Over time, this ease of access to gold has shifted the patterns of gold ownership. At first, investment funds just added another dimension of demand for gold to the marketplace, but recently, the effects of the COVID-19 pandemic have caused gold backed investment funds to become the main source of global gold demand. Suddenly jewelry purchases have plummeted; imports of gold by India and China, the largest buyers of jewelry in the world, have fallen dramatically this year. Central banks have actually reduced their rate of gold buying in 2020 from 2019 levels. But the amount of gold put into bank vaults on behalf of investment funds backed by gold has skyrocketed in the past several months.
In short, the share of gold purchases and of gold in storage controlled by investors is rising. As investors increasingly turn to gold in their investment accounts, the ups and downs of gold prices will likely become more dramatic and rapid, because investors with no reason to own gold other than for profit now control a larger share of the gold market.
It has become easier than ever for investors to buy gold due to the rising popularity of gold backed Exchange Traded Funds. Conversely, it is also easier to sell gold than ever before. When gold falls out of favor as an investment vehicle, for whatever reason, the ability of investors to trade gold backed investment funds on the sell side will make downward changes in the price of gold happen far more quickly than ever before. Downside price moves in gold could become as rapid and dramatic as downside corrections tend to be in the stock market. Current holders and new buyers of gold alike should be prepared not just for higher prices, but for higher price volatility in gold markets as well.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
