Goldman Reveals the Secret Lever That Sends Gold Flying ๐
Goldman Sachs just dropped a major structural note that reveals the extreme leverage institutional capital has on hard asset pricing. They calculate that every single basis point (0.01%) increase in Goldโs share of US financial portfoliosโdriven purely by new investor purchasesโdrives the Gold price up by a staggering 1.4%.
This thesis confirms a crucial dynamic: The smaller the current allocation of an asset in traditional finance, the more volatile the price reaction when institutions begin to rotate. If legacy portfolios shift even minor fractions toward inflation hedges, the resulting supply shock is immediate and dramatic. This exact mechanism is why $BTC and $ETH see massive percentage moves during periods of institutional accumulation. Pay attention to allocation flows, not just daily candles.
Disclaimer: Not financial advice. Always DYOR.
#Macro #BTC #Gold #Finance #Allocation
๐
