What's behind Gold's Robust Performance...?
Gold has had a pretty good run over the last decade.... investors have more than doubled their money over that time period.
For a stable asset, which we usually treat as a hedge, that is a good basis of a return.
There are several factors we can point to that might explain these increases:
- The Covid pandemic
- High inflation, although vesting there seems to have been a little belated
- The fact that LARGE investors tend to buy it so there is HUGE demand.
- Tradition, for whatever reason, we trust it.
- Oh, and of course because the price has been going up!
What I don't get is the last year's robust performance...
Gold has returned around 30% YTD, but the odd thing is that the correlations that used to drive the gold price - US interest rate movements and the strength of the dollar appear to have broken down.
Some commentators think the new factor is China - buying up gold to defend itself against a 'weaponisation of the dollar'.
However there are probably even more mundane factors at play..... inflation may have fallen this year but there's a lurking feeling that we are entering into an era of inflation volatility very different from the former deflationary bias.
However check out that latest dip.... Post Trump, maybe now the markets are expecting better performance so it's time to offload some gold.
Is now a good time to buy gold final thoughts...?!?
I'm thinking just buy the dips, shame i missed that recent 10% pull back!
Posted Using InLeo Alpha
Silver’s done pretty well too. I’ve never done more than dabble in gold, but I DCA’d into silver a few years ago and have held since then. It’s so much less painful to buy and sell smallish amounts of silver rather than gold. The premium/markup on small gold coins is just crazy.
Ah yes very fair point on silver I am gonna have a look at that too!
Congratulations @revisesociology! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPI guess this is one of the assets that you can buy this blindly at any given moment without regretting the timing. It feels like it had been used as a hedge in so many different was as it does feel like big recession is on route again.
Also...it feels like it is easier to purchase now as then before it was through shady dealers. It has become more common. No owner here though....i dont want stuff lying around in house thus you need a bank and that all is too much hassle
You can buy online too and the company stores it for you!