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Commodities Briefing - Categorized | Bullion/Gold, Price Watch more

Why gold prices dropped in 2013

Posted on 15 January 2014

Most seasoned investors have some allocation to precious metals in their portfolios, most often gold. They believe that such an allocation protects them, as it is a hedge, or an insurance policy, against the proliferation of paper (fiat) money by the world’s largest central banks. Fiat money is not backed by real physical assets.
In concept, I agree with this sentiment. Most investors who invest in precious metals ETFs, such as the SPDR Gold Trust ETF, through the supposedly regulated stock exchanges (paper gold) believe that they actually have a hedge against future inflation. In what follows, I will try to explain why they may not, and why their investments in paper gold may just be speculation………………………………………..Full Article: Source


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This post was written by:

VRS - who has written 40705 posts on Opalesque Commodities Briefing.


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