“…Investors Buy Up Gold” is the remainder of the headline in Friday’s (2/22) Wall Street Journal. The following are direct quotes from the six column piece, with no words of mind added.
“Investors are buying gold again as concerns about a slowing global economy are putting a premium on safer investments. Gold prices are up nearly 13% since August, when the NASDAQ Composite Index last hit a record. Fresh worries about the health of major economies in Europe have quelled the expected rise in global interest rates this year. Gold draws more investor interest when borrowing costs fall. This has made gold a compelling choice for money managers seeking to hedge their portfolios at a time of anxiety over economic growth and trade conflicts between the U.S. and its partners.
“Investors aren’t the only ones seeking out gold. Central banks bought the most gold by volume last year since 1967, according to the World Gold Council. Gold holdings at global central banks have increased by roughly 13% – or 3,900 tons since 2009, according to TD Securities. China announced in December that it had increased its gold pile by nearly 10 tons in 2018. Its first purchases in three years. Also buying last year were Russia, Turkey and Kazakhstan. Egypt made its first gold purchases since 1978, and Thailand, Indonesia, the Philippines and India, all returned to the market after long absences. Many emerging market countries are looking to boost their gold reserves, which are comparatively small. Other nations, such as Russia, which the U.S. has repeatedly sanctioned in recent years, are seeking to lessen their dependence on the dollar. It is expected that central bank gold holdings world-wide will grow by another 800 tons over the next two years. “A lot of people see a bad moon rising, and if you want to have a reasonable downside hedge, gold is the instrument,” said Hakam Keya, a portfolio manager at Neuberger Berman.”
You decide! We supply at 1% including delivery, and charge only $25 when you sell. A long time customer of mine, to facilitate a real estate deal, sold $297,000 worth of Gold Eagles, and it cost him $25!
Don Stott. don@coloradogold.com