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.
-
What is the 25x retirement rule and does it work?The 25x retirement rule has been around for decades but many experts question if it is a suitable strategy
-
When is the self-assessment tax return deadline?If you are self-employed, rent out a property or earn income from savings or investments, you may need to complete a self-assessment tax return. We run through the deadlines you need to know about
-
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.
-
What the return of the bond vigilantes means for investorsAnalysis The US Federal Reserve is dancing to the tune of the bond vigilantes, says Max King. Here’s what that means for stockmarket investors, the economy, and you.
