Why gold is making a comeback

Aug 31 2013, 13:32 IST
Comments 0
Gold has rebounded 15 per cent to $1,396 an ounce since sinking to $1,212, its lowest level in almost three years, on June 27. (Reuters) Gold has rebounded 15 per cent to $1,396 an ounce since sinking to $1,212, its lowest level in almost three years, on June 27. (Reuters)
SummaryVolatile currency mkts, renewed demand for jewelry in China & India have pushed prices higher.

Syria has also reminded investors that it's a dangerous world out there: wars can spread and oil prices can spike, hurting economies and stock markets.

Investors want to add back a little insurance to their portfolios these days.

"If we lived in a perfect world, we would not need gold," says McGlone. "But since we don't, we do need something that is the ultimate store of value."

Investors don't need to buy gold bars or coins to invest in the metal.

Exchange-traded funds are investments that are similar to mutual funds. Both can be bought and sold on exchanges. Some of these funds, such as ETF's Physical Swiss Gold Shares and SPDR's Gold Shares, allow investors to buy into trusts that invest directly in gold.

HAVEN FROM STORMY CURRENCIES

The Fed appears close to reducing its $85 billion in monthly bond purchases, and that has stirred up currency prices worldwide, particularly in emerging markets. Investors had previously borrowed in dollars at low rates and then invested in faster growing economies in Asia and Latin America.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...