In this edition of Gold Investor (Volume 8, March 2015), we take a closer look at gold’s performance and relevance for investors in the current environment, paying close attention to:
- Gold in a rising dollar environment
In addition, we discuss:
- The factors that drive gold
- The relationship between gold and US interest rates.
The most recent edition examined gold’s performance during the first three quarters of 2014, exploring relevant macroeconomic factors that might have influenced gold’s performance in Q4 2014. This was published in October 2014
In our view, there are four main reasons investors should view gold as a valuable portfolio component today:
- Positive economic growth is supportive of gold’s long-term demand
- Rising interest rates do not necessarily push gold prices down
- Gold’s cost effectiveness makes it an attractive portfolio hedge compared to other strategies
- Constraints in mine production and falling gold recycling have kept the market in balance.
Explore the factors that have driven China’s rise to become the number one producer and consumer of gold and why the market will continue to expand, irrespective of short term blips in the economy.