Welcome to the winter edition of Gold Investor, where leading market participants assess the relevance of gold against a backdrop of persistent geopolitical turmoil.
Gold: the ultimate insurance policy
Dr Alan Greenspan was Chairman of the Federal Reserve from 1987 to 2006 and has been a key adviser to government agencies, banks and financial institutions ever since. He reveals his deep concerns about economic prospects in the developed world and assesses the long-term value of gold.
"Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance."
Maximising gold’s monetary value
Gold is widely recognised as a national store of wealth. But it can make a much wider economic and social contribution, as Erkan Kilimci, Deputy Governor at the Central Bank of the Republic of Turkey, explains.
“As gold has no credit risk, it is one of the safest assets a nation can hold. It is also one of the most liquid assets available so it plays an incredibly useful part in a central bank portfolio.”
Smart investing and the role of gold
Celia Dallas is Chief Investment Strategist at global investment firm, Cambridge Associates. She discusses optimal investment strategies in a world beset by uncertainty – and the role that gold can play in this environment.
“In the current environment of swelled central bank balance sheets and competitive currency devaluations, we regard gold as a useful addition to portfolios.”
Europe: A catalyst for gold
Suki Cooper, Precious Metals Analyst at Standard Chartered Bank, believes that rising political uncertainty across Europe could have a significant impact on gold demand.
“Gold draws broad-based safe-haven demand in the event of systematic risk such as the great recession, and the elections across Europe this year have scope to shock markets again.”