Securities of stable value are “safe havens” for investments. These are goods that actually have an intrinsic value, such as precious metals or works of art. They’re therefore less exposed to, if not completely protected from, market volatility. This label can also be given to government bonds or currency-based funds from countries that are considered very stable. Follow me
Gold is a special asset. Simultaneously a commodity and a foreign exchange instrument. Cyclical and defensive at the same time. Used as a store of value and medium for exchange for millennia. With references to the metal in the Torah, Bible, Qur’an and Bhagavad Gita, its historical allure to humans verges on empyrean.
Continue readingThe price of gold has stabilised above $2,000 for some months now. It is difficult to predict where the price will go today, as recent data on US inflation has made many analysts less confident of an imminent interest rate cut. Gold and interest rates The price of gold and interest rates, or rather gold and the dollar, are two assets that tend to be inversely correlated: when the dollar depreciates, gold, which has a reference currency in the greenback, tends to appreciate, precisely to preser ...
Continue readingWhat is the outlook for gold and silver this year? The gold price target One of the consequences of the monetary easing expected this year is the appreciation of assets such as gold and silver. This is the prediction of Joni Teves, precious metals strategist at UBS, as reported by CNBC in an article by Lee Ying Shan: Teves believes gold could reach $2,200 an ounce. However, the target is not far from the current price of just under $2,030 an ounce. The correlation between safe-haven assets an ...
Continue readingGold seems to be firmly above the $2,000 an ounce mark. What are the prospects for the price of the yellow metal in 2024? An interview by Thomas Pentsy with Christian Brenner, CEO of Philoro Switzerland, has been published on finews.com. Three strengths for gold Brenner believes there are at least three good reasons to see a positive outlook for the gold price. The likely bearish interest rate cycle. In this case, gold will come out ahead as competition from assets that pay interest on a re ...
Continue readingWhat are the price prospects for gold in 2024? Robert Halver, Head of Capital Market Analysis at Germany's Baader Bank, writes about this in "Das Investment". Commodities: weak demand and efficient supply chains Halver cites weak Chinese demand as one of the main reasons for the weakness in commodity prices, from metals to oil. Other factors include the general weakness of the global economy and the improved functioning of supply chains. The latter factor, the improved effic ...
Continue readingGold touched the $2,000 mark, albeit briefly. The lack of uncertainty in the markets is attracting more and more investors to this traditional safe-haven asset. Uncertainty drives gold price The price of gold has breached the $2,000 an ounce mark, albeit temporarily. Having crossed such a critical threshold, the rebound in the price of gold in recent weeks - particularly after the events leading up to the war in Gaza - is evident: from $1,821 an ounce on 4 October to $1,967 at present. Haven ...
Continue readingDiversification is an investment strategy that consists of mixing various investments within a portfolio to reduce risk: basically ‘not putting all your eggs in one basket’ for investors. The lower the correlation between the assets in the portfolio, the greater the benefits of diversification.
Continue readingIn recent months, gold has approached the record high of $2,050 an ounce, but has not yet surpassed it. In an interview with Valerio Baselli, VanEck's portfolio manager, he talks about the outlook for gold in the coming months. Gold's safe-haven nature Gold is considered a safe haven asset from a financial point of view. This means that the price of the precious metal tends to rise in times of increased economic uncertainty, as investors see it as a store of value. There are at least t ...
Continue readingGold is considered a safe-haven asset, i.e. an effective way of protecting portfolios in times of market crisis, volatility or inflation: however, some financial experts believe that gold may not be such an effective investment in the long term. Financial instability boosts interest in gold Periods of market uncertainty increase investor interest in gold. For example, a Gallup poll shows that the percentage of Americans who believe that investing in the precious metal is the best long-term inv ...
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