A leading expert in wealth and investments has written an article saying that "Everyone should own some physical gold".
Rob Marstrand - founder of OfWealth said:
"...In a “good” world – with vast, fast growing, gold-hungry emerging markets like India and China – consumer demand will drive up the price. In a “bad” world – of bursting asset bubbles, financial crises or war – gold is insurance."
His sentiment is shared by Swiss private bankers. Some years ago the ‘Gnomes of Zurich’ turned their back on gold but today, it’s common to hear institutions from Geneva or Zurich advocating a 5% allocation to gold. Some even go as far as 10%.
The “good” sighted by Marstrand was boosted at the start of week as Indian Jewellers’ share prices rocketed. This came after the Indian government withdrew an order that brought the industry under anti money-laundering legislation. The move comes just as gold buying improves before the Hindu festival of light, Diwali, the peak season for gold demand in India. The massive Chinese gold market also came back to life, increasing international market activity, following the long Golden Week national holiday period.
As for the “bad” - Bombers took off from the US Pacific territory of Guam on Tuesday night, before entering South Korean airspace and conducting firing exercises over the East Sea and Yellow Sea. While troubles mounted in the European Union as Brexit talks stall and a huge question mark hangs over Catalan independence.
On Tuesday the UK's gold price held near its highest level since mid-September, levelling at £978 per ounce extending the metal's rally from Friday's eight week low to 2.4% as world stock markets slipped further from last week's new record high. On Wednesday the prices stablised as the U.S. dollar held steady, with investors waiting for minutes from the U.S. Federal Reserve's latest meeting for clues on the outlook for potential rate rises.
"Good or bad", gold continues to function as a safe haven store of value and diversifying your portfolio makes sense. As Marstrand says, 'everyone should own some physical gold'.