Global gold markets are now "very effective price" and "greatly diversified," as the market feeds on several sources of demand and investment demand is not just speculation. Not only is gold a financial asset, it is also decorative, which becomes more important with higher discretionary income in India, China and elsewhere in the developing world, where he is the actual demand rampant. "How many more people to buy convertible bonds and wear it around their necks, or use a stock certificate and decorations? There is no category of other assets such as gold," says Toussaint. Diversification has taken the central bank, another major source of demand, which is a new role as central banks became a net buyer of yellow metal, according to a study by the World Gold Council.
It is difficult to identify the exact reasons, and behind the 10-year term gold bull, but the reality is that the interest in gold is as old as money itself. Whether it's a hedge against inflation, a bet on alternative monetary asset, or a move to a safe haven, GLD is one of the most popular ways to gain exposure to the yellow metal.
Owning GLD is clearly not the same as owning gold, only because they serve different purposes. GLD allows investors to play this metal material without facing the basic costs and logistical problems, but it does not entitle one to the actual amount of gold. GLD helped make the market more democratic, to some extent, but also inject liquidity, thus fueling further price volatility. Regardless of what Toussaint or anyone else says, there will always be skeptics, but as long as gold maintains its course will continue to GLD to thrive
No comments:
Post a Comment