Since the health emergency of
certainties began, we have very few. And even gold, which usually never
betrayed, seems to shrink. Isn't gold also a certainty anymore? Price
volatility, unexpected collapses and equally unexpected rises that seem
unrelated to the dynamics we had become accustomed to over the decades. But
nothing of what we have experienced in the past is similar to what we are
experiencing now. Or maybe yes? Because reading the data well, gold is actually
responding just like a good observer would expect...
Physical and financial gold: that's why physical gold never betrays
There are anomalies on the market
that apparently seem to contradict many of the 'rules' we have come to know so
far: financial gold is losing less ground than physical gold. What is
happening?
The movement of goods is
extremely slow, as are the movements of physical gold. The ingots are there,
but they are in the wrong places and those who want to buy gold
bullion do not find any .
There is therefore a race to the
ingot and the gold coin that are still in circulation, which however are
increasingly scarce.
Switzerland has closed 3 of the
most important refineries in the world and the mines are practically stopped.
The direct consequence is that
the price of physical gold has diverged, and quite a lot, from the prices of
gold futures, forward contracts. Markets went haywire and triggered
unprecedented volatility.
Financial gold, why is it not as safe as physical gold?
Today, more than ever, investors
want to diversify investments in the face of a crisis whose consequences cannot
yet be calculated, but many operators have closed and the real scarcity of gold
is reflected in prices. This means even if between the two, physical and financial,
the only one that is worth having is physical gold: it is yours, you can sell
it whenever you want, and it is de-related by counterparties. It makes a big
difference right now. And the scarcity that now creates so many problems will
become an upward push when all this is over.
On the other hand, laugh about
it, Rob Halliday-Stein, founder and managing director of Bullion by Post, told
the Financial Times: " In practice, we sell anything in real time as soon
as it arrives in the form of stocks in our warehouses. Physical gold now has a
question as if it were toilet paper just delivered to the supermarket, in times
of quarantine ».
Nobody can know. Gold also
apparently violated laws that seemed unbreakable. However…
Although it entered a volatility
phase, given the liquidity crisis of the large institutional investors, in the
first phase the gold had a significant drop, but then it returned or is
returning to the pre-crisis prices, therefore to the highs of the year.
And when will it all be over? The
tail of the health crisis will likely be felt for long months and will affect
the entire global economy in ways we don't know yet. And if gold has held up so
well in the toughest months of the year, when everything has passed it will
probably go up again, reaching over $ 1,800 / oz and maybe more. Some venture,
perhaps too much, to hit $ 200 / oz.
Posterity will judge. For now,
only one thing seems certain: it is better to immediately put gold in the
basket and limit the losses of our investment portfolios.
Read
Also: How
to invest in gold bars
People buying gold bars for many different reasons, some as a hobby, some for investment potential, however the thing to remember is that gold bars purchasing can be fun as well as a way to invest money over time. Gold bullion that range between 1/10 ounces and 1 ounce do cross at among 3% and 15 in step with cent premium above spot fee. This will be based totally at the gold bar size and the amount being offered.
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