24
Mar
2016

Diversify Into Gold As An “Insurance Policy”

“Investors could be forgiven for heading for the hills given the tumultuous start to 2016,”  so writes Andrew Oxlade in The Telegraph today who advises investors to diversify into gold as an “insurance policy”:

We have long been advocates of exposure to gold as an insurance policy. This was demonstrated once again in the recent sell-off when the price of bullion surged from $1,061 (£762) an ounce on New Year’s Day to $1,246 (£895) by early February. In times of fear, gold is in demand. The price also rises when inflation becomes a danger.

Deflation remains the bigger threat for now, which is partly why gold has been a poor investment in recent years, but the money printing excesses of central banks could yet unleash inflation. In the meantime, the gold price offers some protection during repeat episodes of buckling confidence.

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Gold in GBP – 5 Years

The Telegraph, like GoldCore, had warned of such turbulence at the start of the year. John Ficenec, editor of the Questor column, warned of the real risk of volatility and falls in stock markets.

We believe that the tragic events in Brussels show the continued very high degree of geopolitical risk and the need for an insurance policy.

Further attacks are quite possible, including in the U.S., and this should support gold.

Geopolitical risk is frequently underestimated and it would be unwise to discount the risk of a September 11 style attack in the coming months. Intelligence agencies and ISIS themselves are warning of such attacks and investors need to be diversified to hedge this growing risk.

It gives us no pleasure to be the bearer of this bad news but it is important that the reality of the real risks of today are considered in order to protect and grow wealth in these uncertain times.

Read Telegraph article here

 

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Market Performance This Week (Finviz)

Gold is -2.6% and silver -3.4% this week and markets are in a sea of red as they react to the terrorist attacks in Brussels (See Table).

 

Gold Prices (LBMA)

24 Mar: USD 1,216.45, EUR 1,088.75 and GBP 861.89 per ounce
23 Mar: USD 1,232.20, EUR 1,101.76 and GBP 870.03 per ounce
22 Mar: USD 1,251.80, EUR 1,117.35 and GBP 876.96 per ounce
21 Mar: USD 1,244.25, EUR 1,104.47 and GBP 863.60 per ounce
18 Mar: USD 1,254.50, EUR 1,112.93 and GBP 868.78 per ounce

Silver Prices (LBMA)

24 Mar: USD 15.28, EUR 13.70 and GBP 10.82 per ounce
23 Mar: USD 15.58, EUR 13.92 and GBP 10.99 per ounce
22 Mar: USD 15.89, EUR 14.16 and GBP 11.12 per ounce
21 Mar: USD 15.81, EUR 14.02 and GBP 10.99 per ounce
18 Mar: USD 15.94, EUR 14.13 and GBP 11.02 per ounce


Gold News and Commentary

Spot gold targets biggest weekly loss in four months (Reuters)

Stock Slide Deepens in Asia as Oil Slumps Amid Resurgent Dollar (Bloomberg)

Gold Falls to Lowest in a Month as Dollar Advance Saps Demand (Bloomberg)

World’s richest Hindu temple wants gold back rather than cash (Reuters)

China’s vice finance minister denies any secret US-China exchange rate deal (Reuters)

Gold Investors Unfazed By Fading Rally – Chart (Bloomberg)

Silver Attractive as Gold-Silver Ratio at 2008 Financial Crisis Level – Video (Bloomberg)

Technician: Gold Heading Toward $1,450—Here’s Why (CNBC)

Bonds Best-Bid But Bullion Blasted As Belgium-Bombing-Bounce Is Battered (ZH)

Stocks vs. Gold – Money and Investment (Future Money Trends)

Read More Here

 

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‘7 Real Risks To Your Gold Ownership’ – Must Read Gold Guide Here

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Mark O'Byrne
Executive Director