Finance forum: Stable value 13 articles - 1.183 readings


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.


Why does gold no longer protect against inflation?

Posted on 07.01.2022

Inflation seems to be at the top of the list of problems facing the financial markets in recent months. A typical solution, in times of currency devaluation, could be to buy gold. But this is a solution that immediately becomes less convincing if you look at the development of the gold price in recent months. Angela Göpfert writes about it comprehensively (and with the interesting opinion of some experts) on "tagesschau.de". Gold: the best tool to fight inflation? In recent mont ...

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Pound, euro, yen weaken against dollar as Fed taper fears kick in

Posted on 29.11.2021

The pound declined against the dollar last Thursday to its lowest level this year. The move came as the US Federal Reserve’s prospect to tighten policy faster than forecasts boosted the greenback.   US central bank hints that it might wrap up its stimulus programme and raise interest rates earlier weighed in on the pound, which touched December 2020 lows of $1.3304. Uncertainty over when the Bank of England (BoE) will follow in the Fed’s footsteps to counteract rising infl ...

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Investors price in a UK price hike, leading pound to 20-month high

Posted on 28.10.2021

Pound reaches new 2021 highs against the euro, trading at its highest since March 2020, as investors price in a Bank of England (BoE) rate hike next week. The pound is on track for its biggest monthly gain in two years as it records 2% gains compared to the euro month-to-date. Yesterday, the sterling gained 0.2% and traded at €1.1874.  The UK and EU are experiencing monetary policy divergence since the market expectations for a rate hike by the European Central Bank (ECB) are less opt ...

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Inflation has reached peak levels. Hedge against a bearish market with gold

Posted on 24.09.2021

Many have expressed their bearish stance on equity markets. First, you have the rising debt that has piled since the pandemic hit the globe. Second, you have the high inflation hitting markets as they recover. Plus, the lack of progress on climate change could also threaten equities.  The bull run after last year’s dip in equity markets led the US to reach all-time highs. Where it goes from here is uncertain but hedging against a dip is what experts have been talking about recently. ...

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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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