The yellow metal dipped to a six-week low under $1,500 an ounce this week. Parliamentary support for Greece's latest austerity package allayed fears of an immediate debt default. The end of the Fed's money-printing programme (QE2), which had stoked fears of inflation, has also tempered enthusiasm for a safe haven. But the gold bull market that began in 2001 is unlikely to be over yet.
For starters, the euro crisis is set to drag on. With developed economies still weak, there is talk of more money printing (quantitative easing) in both Britain and America. Even if this fails to materialise, interest rates all over the world are negative in inflation-adjusted terms. So fears of currency instability and debasement through inflation are likely to endure. That's good news for gold, the ultimate currency and store of value.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
As Erste Bank's Ronald Stoeferle points out, while interest in gold is gradually growing, we are still "far away" from the mania that typifies the end of a long bull run. That's when prices rocket, forming a vertical line on a chart. Investors should stock up. Stoeferle expects gold to reach $2,000 in 12 months.
-
Steve Webb: The triple lock is there to do a job. I’m not embarrassed or ashamed of itThe triple lock means 13 million pensioners will now get an above-inflation state pension boost in April. While the rising cost of the policy has stirred controversy, Steve Webb, who served as pensions minister when it was introduced, argues the triple lock is vital and should stay. Webb speaks to Kalpana Fitzpatrick on the new episode of MoneyWeek Talks – out now.
-
How retirement pots risk running out 11 years early if inflation remains highPension savers could find their retirement income may not last as long as they anticipated over fears that inflation may not slow down
-
The challenge with currency hedgingA weaker dollar will make currency hedges more appealing, but volatile rates may complicate the results
-
Can Donald Trump fire Jay Powell – and what do his threats mean for investors?Donald Trump has been vocal in his criticism of Jerome "Jay" Powell, chairman of the Federal Reserve. What do his threats to fire him mean for markets and investors?
-
Freetrade’s new easy-access funds aim to beat top savings ratesFreetrade has launched an easy-access exchange traded fund (ETF) range - here’s how the ETFs work and how they compare to the savings market
-
Go for value stocks to insure your portfolio against shocks, says James MontierInterview James Montier, at investment management group GMO, discusses value stocks and slow-burn Minsky moments with MoneyWeek.
-
Where do we go from here?Features A new series of interviews from MoneyWeek
-
As China reopens, why pick an income strategy?Advertisement Feature Yoojeong Oh, Investment Manager, abrdn Asian Income Fund Limited
-
Income in the USAAdvertisement Feature Fran Radano, manager on The North American Income Trust
-
The challenge of turbulent marketsAdvertisement Feature Today, ISA investors face one of the most challenging economic environments seen in recent years. However, good companies can still thrive, even in the toughest economic conditions. That’s why BlackRock’s fund managers focus on these businesses when they’re looking for investment opportunities.
