Gold-Backed ETFs Seeing Run of Inflows

Investors across the globe are squirreling assets into gold as the coronavirus outbreak spreads, according to an article in Bloomberg. The article reports that late last month the amount of bullion in ETFs spiked to over 2,600 tons, adding, “After surging 18% last year, gold has extended its rally in 2020, with prices hitting the highest since 2013.” According to Moody’s Analytics Chief Economist Mark Zandi, a global recession is likely to occur as a… Read More

Mark Mobius says Buy Gold “At Any Level”

According to veteran investor Mark Mobius, “Gold’s long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up,” reports a recent Bloomberg article. Mobius told Bloomberg TV that accumulating gold will “reap long-term rewards as leading central banks loosen monetary policy and the rise of cryptocurrencies serves only to reinforce demand for genuinely hard assets.” He added, “I think you have to be buying… Read More

Ray Dalio: Gold Will Appeal During Global Market “Paradigm Shift”

Billionaire investor Ray Dalio believes that the push by central banks toward policies that devalue currencies is about to cause a shift in investing toward assets such as gold. This according to a recentCNBC article. In a recent LinkedIn post, the article reports that Dalio explained, “For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.” The article points out that his note comes two… Read More

A First: Sam Zell Buys Gold

In an interview with Bloomberg TV, billionaire founder of Equity Group Investments Sam Zell said, “For the first time in my life, I bought gold because it is a good hedge.” This according to an article in Bloomberg. The article explains that investment in new mines dwindled after metal prices tumbled in 2011, and gold is down by almost a third from its peak. According to Zell, “Supply is shrinking and that is going to… Read More

Gundlach Favors a Gold Stock Fund

At the Barron’s 2019 Roundtable held last month, Jeffrey Gundlach of DoubleLine Capital shared some insights: According to Gundlach, there has been an expectation by many that the dollar would go up because of the Fed’s planned rate increases. But while the Fed predicted two such increases in 2019, Gundlach says “the market is expecting virtually none. I think the Fed is already showing signs of capitulation, and so it’s likely that the dollar will… Read More

How Gold Performs in Different Market Scenarios

Proactive Advisor recently published part of a white paper authored by active money manager Flexible Plan Investments regarding what it terms the “gold debate”—a “broad overview of the tangible benefits of portfolio diversification with gold, and some eye-opening data suggesting a much more important role for gold in portfolios that seek optimal risk-adjusted returns.” The article offers arguments in favor of including gold in an investment portfolio, including using it as a: Hedge against inflation… Read More

Hulbert: Bitcoin Will Never Replace Gold

In an article for Barron’s, Mark Hulbert outlines the findings published in a paper by University of Chicago economics professor Eric Budish titled, “The Economic Limits of Bitcoin and the Blockchain.” According to Hulbert, Budish’s paper argues that bitcoin is “destined to play no more than a ‘bit’ role in the global monetary system because, if it were to grow ever more significant, it would become increasingly vulnerable to an attack that could destroy much… Read More

Egyptian Billionaire Sawiris Invests Heavily in Gold

A recent Bloomberg article reports that Egyptian billionaire Naguib Sawiris has channeled half of his $5.7 billion net worth into gold and has said he believes the precious metal will rally further, “reaching $1,800 per ounce from just above $1,300 now, while ‘overvalued’ stock markets crash.” In an interview with Bloomberg, Sawiris said, “In the end you have China and they will not stop consuming. And people also tend to go to gold during crises… Read More

Gold Outperforming Since Fed Rate Hikes

Since the Fed raised rates last month, gold has outperformed most major asset classes, according to a recent Bloomberg article. Though counterintuitive, the article says, gold’s strong performance has become the norm since the global financial crisis. “Unless greenback weakness reverses,” says Bloomberg intelligence analyst Mike McGlone, “gold should shine.”

Insights on Owning Gold

In a recently published article in Advisor Perspectives, Robert Heubscher interviews First Eagle Investment’s Thomas Kertsos to gather the research analyst’s insights around owning the precious metal. Here are some highlights: Current trends in the gold market: “We see that the Fed communications about rate hikes and election outcomes continue to be significant drivers of the gold price in 2017, exactly as they were in 2016.” Why hasn’t the price of gold increased more since… Read More