Finance forum: Stable value

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.

GBP losing ground to safe haven USD as global risk rises

Posted on 22.07.2021

Monday, July 19, dubbed “Freedom Day”, marked the end to all legal, social, and economic restrictions the UK imposed to weather the Covid-19 storm. But to the pound, the day marked a continued free fall to its lowest since January. Cable ended at $1.3633 yesterday, reaching lows of $1.3592. The pound lost ground to the dollar over four consecutive days, scrapping 1.62% from its value. That marks its longest losing streak since the pandemic hit last year.  Why is the pound dropp ...

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Gold higher as emerging and oil-producing nations buy

Posted on 07.07.2021

Central bank appetites are rising for Gold. Countries are trying to diversify away from the US dollar, hedge against geopolitical tensions, and curb uncertainty. According to Citigroup Inc. analysts, central banks could buy 500 tons of Gold in 2021 and another 540 in 2022. That could provide upside for the bullion that has had lackluster trading recently. Higher bond yields, strengthening dollar, and a more hawkish Fed led to the highest Gold price drop in four years in June. The case is shifti ...

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Is gold a good inflation hedge?

Posted on 14.06.2021

The run for tangible stores of wealth is not new. Before gold, there were knives, dolphin teeth, salt, and seashells to name a few. Gold, though, has been the go-to metal for inflation hedging. For one, as people have more money to spend, demand for gold rises. That, coupled with a fixed supply, results in soaring gold prices. Also, as rates increase to curb inflation, investors eye tangible assets to maintain their wealth until the storm passes. With 2021 seeing the highest inflation numbers i ...

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BOE Gold sold at an unusually high premium amid central bank buying

Posted on 31.05.2021

The world’s largest Gold vault is located at the Bank of England (BOE), which holds the bullion on behalf of other central and commercial banks. It usually commands a higher premium, normally zero to 20 cents above market. But last week that premium more than doubled, rising to 50 cents above benchmark London prices before settling at around 20 to 40 cents. According to a Bloomberg article last week, the premium may be mainly due to buying by the Bank of International Settlements (BIS). Th ...

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Gold rises to four-month highs amid rising uncertainties

Posted on 26.05.2021

Gold reached its highest levels since January 2021 on Monday, as money managers and large speculators buy for the long run. The bullion’s performance is recording a steady three week upward trend  which could wipe out losses seen in the first three months of the year. Government data published last Friday show that hedge funds and other speculators have increased their net-long positions in gold futures and options to its highest levels since the beginning of the year. Bloomberg cover ...

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Renewed interest in gold as a safe and inflation-hedging investment

Posted on 18.05.2021

Gold is bouncing back from its March lows, reaching three-month highs, amid fund manager’s interest and economic signals. The Bloomberg article covering the subject displayed data showing that investors through exchange-traded funds (ETFs) have been reversing their position on Gold, driving a six day buy streak. Similarly, hedge fund managers have “increased their net-long position”, reaching new three month highs. Economic Signals The Federal Reserve signaled on Monday that ...

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Is the pound set for a pull back?

Posted on 30.03.2021

After rallying hard for over 5 months, touching its highest levels in nearly 3 years, the British pound is looking primed for a pull back. It has fallen more than 1% in March alone. Currency analysts believe the pound’s run up has been stretched as the UK has imposed one of the strictest lockdowns to tackle COVID. Closed businesses continue putting a strain on the country’s growth prospects. This is just part of the growing list of worries Prime Minister Boris Johnson is facing. ...

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Reddit Retail Activists Look Towards Silver

Posted on 08.02.2021

In a curious turn of events on the GameStock saga, the group of retail investors from the “WallStreetBets” Reddit group have apparently turned their focus to the metals markets – namely, silver.  All last week Reddit traders were buying up shares of companies such as GameStop and American Airlines, driving up the prices and forcing short sellers to buy more stock to meet margin calls. Now, the amateurs seemed to have moved on to ETFs that track the price of silver in ...

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Terrible Savings Rates Push British Millennials to Rush Towards Gold

Posted on 04.02.2021

Low bank yields and COVID-19 uncertainty has sparked a new trend in saving and gift-giving. As gold remains valuable, many people have decided to put their money into the precious metal. Demand among millennials has increased sharply since Brexit, with young people looking for a way to seek safety, optimize their savings potential and give savvy gifts. Safety amid chaos  Following Brexit, UK stocks and sterling plummeted, so many Brits moved their savings to gold, a much mo ...

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