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Gold

Gold: why the rally has room to run

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Gold has reclaimed the spotlight. After a steady climb, it recently reached new all-time highs. While headlines often focus on superficial price moves, the more important story lies beneath: gold is being supported by rising demand, particularly from central banks and investors responding to a complex macroeconomic backdrop. In an environment shaped by inflation, fiscal … [Read more...] about Gold: why the rally has room to run

How are investors using gold?

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36% of 800 professional investors surveyed by us noted ‘diversification’ as their primary reason for holding gold1. Our analysis shows that gold has a low correlation with both equities and bonds and, thus, should contribute strongly to a diversification effort. Figure 1: Correlations between assets Source: Bloomberg, WisdomTree, Monthly data from November 1990 to … [Read more...] about How are investors using gold?

Gold still shining

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While gold is valued for a variety of reasons, the uncertainty and economic fallout tied to the COVID-19 pandemic saw investment drive the price of the yellow metal to record highs in 2020. Equities related to the sector also saw solid investor interest, but as optimism around an economic recovery has grown, gold has lost some lustre thus far in 2021. Gold suffered its … [Read more...] about Gold still shining

Golden Years

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Where previously gold was a quirky ‘alternative’ asset class, potential flow is approaching the sector from all quarters. Global bond and cash holders are looking at gold as a way of diversifying and protecting purchasing power. In this sense, the scope for pension funds to participate lurks like an elephant in the room. Meanwhile, global equity investors are surveying an … [Read more...] about Golden Years