Alternative Outlook

Investment was the key driver for the gold market in Q1 2011, as demand grew by 26% to 310.5 mt from 245.6 mt in Q1 2010, according to the latest Trends report issued by the World Gold Council Thursday.

In value terms, investment demand was $13.8 billion.

The main growth came from bar and coin demand, which increased by 52% year on year, to 366.4 mt.

In value terms, this represented a near doubling of demand to $16.3 billion from $8.6 billion in Q1 2010.

“Chinese appetite for gold has increased rapidly over the past few years. In Ma…

After the Internet bubble of the late 1990s and the real estate bubble that raged from 2000 to 2007, many market observers are quick to call a bubble whenever a specific asset class experiences a significant rise in price.

For investors already in gold, or those considering adding exposure to gold, they must first answer the question, “Is gold in a bubble?”

***To answer this question, let’s define what creates a bubble. Simply put, bubbles are the result of too much investment in a specific asset…

Europe and the US still face major headwinds that threaten their economic recovery and strength of their currencies. Investors are placing their money in real assets such as gold to protect their wealth driving the price ever higher.
Gold headlines of the past fortnight – 3rd May 2011

The UK economy grew by 0.5% in the first quarter of 2011 after a fall of 0.5% at the end of last year,mainly driven by an improving service sector. All eyes will focus on whether the economy can sustain its growth once the tax rises and budget cut…

Sector IM’s Angelos Damaskos explains why he thinks the gold price will continue to rise.

Many observers have been calling the gold price a bubble for several years now but the price has continued to rise.

Gold recently reached a high of above $1,500 per ounce for the first time in history and it is not unlikely that we may see an ounce of gold selling for over $1,600 before the year end.

Putting inflation-adjusted pricing and long-term history aside, it is worthwhile looking at the current situation and the drivers of gold p…

Gold hits new record price as global economic fears push investors into seeking safe havens.

Gold has smashed through the $1,500-an-ounce barrier for the first time, pushed higher by worries about global inflation, the European debt crisis and the state of the American economy.

Spot gold set a new record of $1,501.26 (£917) an ounce in Asian trading, underpinned by a weak dollar. Standard & Poor’s downgrade of America’s debt outlook on Monday sparked a new flight into safe-haven investments.

The ratings agency lowered its credi…

The price of gold will reach $2,100 an ounce within three years and could rise to almost $5,000 by the end of the decade, according to a new report.

Rising demand for gold in China and India will drive the precious metal’s continued bull run, analysts at Standard Chartered, the Asia-focused bank, predicted. They said low interest rates in America and a time lag before mines started supplying more gold would see the rally extend to at least 2014.

“Our base-case forecast is that prices rally to peak at an average o…

Gold has hit new record highs in the last two weeks, with the price driven higher by investors seeking protection from rampant inflation, unrest in the Middle East and uncertainty about the state of the economy.

Gold hit a peaked at £896 per ounce on Wednesday 6th April. Demand is being driven by investors of all sizes, from Hedge Funds to private individuals, looking to it’s properties as a secure store of wealth.

Many individual investors are looking to gold as an alternative to cash. With inflation at it’s highest level for 28…

The gold price has reached a new high of $1,457, an increase of more $16.Investors have once again turned to the perceived safe-haven of gold in times of macroeconomic and geopolitical uncertainty. Investor demand has pushed the gold price to a new record high of $1,457 per ounce, $16 more than the previous high set on March 24.

“Gold hit a new all-time high today as investors once again turned to assets with strong wealth preserving and diversification characteristics and relatively low volatility,” said Marcus Grubb, Mana…

Gold has been making fresh highs recently as a number of events have contributed to uncertainty in the markets and investors have sought out a safe haven for their wealth:

More than £20billion was wiped from the FTSE100 as stock markets reacted to the Japanese crisis. An incredible £380billion has been wiped off the Nikkei Index in two days amid fears of radioactive leaks – the biggest fall since 1987
An OECD report backed the UK’s spending cuts and urged interest rates to stay low to tackle the country’s soaring debt but warned th…

IFAs and agents looking for a simple alternative investment to add to their menu of products could do a lot worse than gold. You don’t need a masters in economics to understand it and you don’t need to be regulated to sell it.

What are the Benefits of Gold for Agents?

There are two key benefits of gold that agents should bear in mind.

Firstly, it’s an opportunity to earn commissions that they wouldn’t earn otherwise. While large investments are not uncommon, gold is a low entry level, liquid alternative to cash and what many ag…