‘You can’t pump gold’: Goldman Sachs says gold has more in common with Manhattan real estate than oil

Core Insights - Goldman Sachs compares gold to Manhattan real estate, emphasizing that both have limited supply and are highly sought after assets [1][4] - Gold's price has recently surged, reaching a record high of $3,700 [2] - The supply of gold is constrained, with only 1% of new gold added to the existing 220,000 metric tons annually, highlighting its nature as an asset for accumulation rather than consumption [4][5] Supply and Demand Dynamics - Unlike commodities like oil and gas, gold's market dynamics are driven by changes in ownership rather than production and consumption balances [5] - The price of gold reflects the willingness of holders to retain it versus those willing to sell, indicating a unique market behavior [5] Buyer Segmentation - Goldman Sachs identifies two types of gold buyers: "conviction buyers" such as central banks and ETFs, and "opportunistic buyers" from emerging markets [6] - Opportunistic buyers provide price support during sell-offs, while conviction buyers influence market trends [7]