We are witnessing an unprecedented gold rush, I feel like I am in California in 1849 when a wave of miners started a real ruthless hunt for the precious metal.
Since last year gold has raised almost 20%, some funds in the first 6 months of 2019 have touched almost 30%, some data speak of purchases for 2 billion euros. Not yet satisfied Russia, China and Poland have further increased their gold reserves, it is spoken to head between 100 and 105 tons. It seems not to believe but in such sudden and unstable periods the yellow metal is the master,personally I recommended the purchase at the end of November (1080 euros). The Vix factor (implicit volatility meter on the S&P 500) led me to this conclusion (in America it is called the “fear” index). It’s not just about indices or bomb news that has caused the price to soar, but it was the fact that 1 trillion euros of bonds have negative yields, stock market prices are very high and continue to rise in the absence of alternatives and in Lastly, the funds I never considered a good solution because of the high fees and the quality of the managers in high cases very questionable (don’t consider Coronavirus).
Factors that are playing a key role:
1)War on tariffs and primacy between the United States and China
2) Monetary policies too accommodative given the stagnation of the economy
3)bonds with negative yields
4)Coronavirus in China
5) in cases of financial market collapse, the yellow metal acts as a parachute
What are you readers thinking? It’s not easy, the questions you’re asking are multiple: do I buy gold bars? Do I invest in derivatives (Cfd/Options)as long as I am aware of the risks? I go to my trusted goldsmith and buy jewelry, in the meantime I use them, and then who knows one day I will sell them? For those who do not mean financial instruments I recommend to buy coins or bullion .I recommend 100 grams, for coins I like New Coined Pound, Swiss Marengo and 10th Use “Indian”.
For guarantee leave always them in sealed envelopes as when you buy them,since once you open the store could make you some problem about the price in case of resale. For those who want to invest quickly can buy the Etf Gold Bullion Securities (Isin GB00BFHZ82) is listed in Business Square and buys and sells as a simple stock, specifically the money will end up in the “caveau” of the British bank Hsbc.
I end this first gold part theme (then I will publish more) , suggesting to users that in case of financial inclusion to weigh % of purchase , personally should not exceed 5% of the portfolio.