Gold gains as faith in paper declines

Gold has fallen for four years on the trot, but 2016 could be a different story.

Gold has fallen for four years on the trot, but 2016 could be a different story. The yellow metal leapt by 20% in the first quarter, its best three-month performance since the global crisis erupted in late 2008. The equity market wobble in January helped bolster gold's safe-haven appeal, while negative interest rates have also stimulated buying, says Kyle Caldwell in The Daily Telegraph.

They have rendered bonds less appealing 30% of high-quality sovereign paper is on a negative yield and make gold's lack of income less of a disadvantage.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

Sign up
Andrew Van Sickle
Editor, MoneyWeek