The latest edition of our Investment Commentary reviews gold’s performance during 2015 and examines the factors that may influence gold in 2016.
The gold price declined in 2015 in US dollar terms – but not in all currencies. In our view, the effect that US rates have had on the gold price is overdone and may take a back seat in 2016.
Amid expensive stock valuations and high market risks, gold’s role as a portfolio diversifier and tail risk hedge is particularly relevant.
The World Gold Council has conducted a study to assess the current state of hallmarking in India.
Our intention was threefold:
- To evaluate the existing hallmarking system
- To stimulate debate around how best to strengthen hallmarking processes
- To demonstrate the benefits of an effective hallmarking infrastructure.
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.
Gold has unique properties as an asset class. The diversity of gold-backed and gold-related products means that gold can be used to enhance a wide variety of individual investment strategies and risk tolerances.
Our analysis shows that gold can be used in portfolios to protect global purchasing power, reduce portfolio volatility and minimise losses during periods of market shock.
It can serve as a high-quality, liquid asset when selling other assets would cause losses.
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.