Gold Bullion Becomes Superhero As Best Asset In 2016
Photo: Flickr/Bullion Vault
Gold has never shined so bright and it’s beginning to have the biggest comeback in over 35 years, according to the chart below from The Economist.
More investors are turning over to Gold as a safe haven, due to what the markets see as volatility around the world in the economy, politics and financial instability of developed societies.
Citi's Jeremy Hale, Graham Bishop and others say, "To balance the portfolio, cash goes to underweight in a negative rate world gold may replace cash in portfolios," according to a recent article by Victor Reklaitis from MarketWatch.
And although Gold may be expensive for some, Deutsch Bank told CNBC news on Friday that investors should buy it for insurance.
"There are rising stresses in the global financial system; in particular the rising risk of a U.S. corporate default cycle and the risk of a sharp one-off renminbi devaluation due to the sharp increase in China's capital outflows," Deutsche Bank added.
Oversea-Chinese Banking Corp. economist Barnabas Gan, the most accurate precious-metals forecaster according to Bloomberg, last week called bullion a “superhero” because of its performance this year, and prices could reach up to $1,400.
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