Should central banks hold gold?
From the late 1980s into the new millennium the answer appeared to be in the negative, with global central bank reserves declining from around 36,000 tonnes to under 30,000 tonnes.
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investor insight
Ask most people that work in finance what they think about Bitcoin, and the likely response will be; “it’s a bubble”.
Google certainly seems to think so too, with “Bitcoin is a Bubble” returning 31,800,000 results, proof of how many times people have, incorrectly so far, called a top in the price of the world’s most famous cryptocurrency.
When we talk about the correlation in prices for assets traded in financial markets we are referring to how closely those prices mimic each other.
Highly correlated assets tend to move in the same direction most of the time. A good example is the shares in our four major banks, which tend to move in unison most days, unless there is some news (either good or bad) that only affects one of the companies.
The value of a gold miner is based on the gold price but provides the investor with the opportunity to achieve a return in excess of the rise in the price of gold.
Recent investor articles have focused on investment in gold, be it physical or other products liked to the gold price. Those looking for exposure to gold prices can also invest in the producers of the gold itself.
The most common question first-time gold buyers ask is whether they should buy a coin or bar.
However, there are a wide range of options beyond just coins and bars, and here are the key options.
One question we are often asked at ABC Bullion is; how much gold or silver should I hold in my portfolio?
Discover some of the factors and options according to Chief Economist Jordan Eliseo.
Discover the eight reasons why Australian investors should consider including physical gold in their investment portfolio. Here is number 2.
2. Gold is a natural holding in low “real” interest rate environments