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Gold remains one of the defining market stories in recent years. Central banks have been accumulating at a record pace, investor flows have returned, and prices have repeatedly tested new highs. Since October 2023, the SPDR Gold Shares (NYSE:GLD) has rallied 175%, far outpacing the SPDR S&P 500 ETF Trust (NYSE:SPY)‘s 63% return. But a new report from Goldman Sachs, led by commodities analyst Lina Thomas, suggests the gold rally may be signaling something far larger for the broader commodity market than a traditional safe-haven trade.Is The World Re-Stockpiling Commodities?Thomas said the key similarity between gold and other commodities lies in the rise of "insurance"-type demand. Sustained central bank buying has supported the gold rally as reserve managers reassessed geopolitical neutrality after roughly $300 billion of Russia's reserves were frozen in 2022. That shift triggered a structural change. Central banks accumulated bullion as a hedge against financial and geopolitical risk. But Goldman Sachs highlighted that this behavior now extends beyond gold.Across energy, food, and industrial metals, governments have begun prioritizing security of supply over efficiency. Strategic stockpiling has expanded. Tariffs and export controls have reappeared. Domestic production incentives have grown. The logic is simple: resilience now outweighs cost minimization.“Where domestic production or substitution cannot provide sufficient security of supply, governments may turn to stockpiling,” Thomas said. ...Full story available on Benzinga.com
