ABC Bullion’s Chief Economist Jordan Eliseo provides an insight into the reasons why investors are turning to gold.

Physical gold and silver have been seen as the ultimate store of wealth for millennia, and have been highly sought after by investors the world over. Demand remains strong today across the globe, with thousands of tonnes purchased annually from a diverse group of investors that include Indian housewives, central banks, hedge funds and family offices. The ABC Bullion Beginners Guide to Investing in Precious Metals covers the major reasons investors in Australia are turning to gold.

In Australia demand has been growing as a result of lower interest rates set by the Reserve Bank of Australia, share market volatility and the slowdown in the Australian economy since the resources boom peaked back in 2011-2012. 

ABC Bullion has witnessed first hand the growth in demand for gold and silver investment by Australian and indeed global investors, opening offices in Perth and Hong Kong to help meet demand.

While investors the world over all have their own specific motivations for wanting to buy physical gold and silver, there are a handful of key reasons investors look to include precious metals in their portfolio these days. These include:

  • An expectation of capital growth
  • As a cash like alternative in a low interest rate world
  • As a way of diversifying their portfolio
  • As a currency hedge

Finally, investors are also increasingly feeling more comfortable holding gold and silver as a hedge against rising economic uncertainty, with debt levels rising and central banks the world over printing money.

Download the ABC Bullion Beginners Guide to Investing in Precious Metals for more information on the major reasons investors in Australia are turning to gold, as well as some of the key reasons silver could prove an even more profitable investment in the next few years.