As at October 7, 2018 gold price per ounce closed at 1,696.15, gold price per gram was 54.54 and per kilo was around 54,541.03. In the current market scenario, one should be buying gold, if he/she wants to invest in what the rich people are investing into. Long time ago it used to be the most common way of buying things and used to be a measure of their status in society from the amount of gold someone owned. Its power is known by the gold rushes the precious metal has led around the world.
The paper money we use is being printed by governments, since this cash is not supported by a physical asset, it is not good to keep printing it. Around the world government debt is at record highs, where the UK, Australia and most of Asia are all up to their eyes in debt and the US Government has debt in the trillions. The reason why debt is of concern as it puts tremendous pressure on any Country’s currency.
Extreme levels of volatility are seen in the currency markets especially the US dollar. In such cases investors turn to safer investments like gold. There is lot of money inflow taking place into gold stocks, gold ETFs, and physical gold. This shows the concern that investors have and are looking for a safe haven in gold. Its limited supply and higher demand explain the increased price for gold. In the last decade there haven’t been many gold mines discovered as it used to be in the past. If currency markets experience any kind of panic, the constraint on supply will eventually impact the prices as well when the currency markets feel any form of panic.
In simple terms it is about diversification which means that one should not put all their eggs in one basket. There is a concern that companies are finding it harder and harder to grow, despite the stock market inching closer to record highs, which therefore push stock prices higher. It is this time when stocks and property aren’t able to generate above-average returns, gold and other precious metals like silver become attractive.
This allocation can also add protection to your portfolio i.e. hedging, where if other assets fall the rise in gold will offset the loss of the portfolio at least partially. As gold tends to increase in value due to inflation which is another reason to invest in gold. This is because gold increases in value with inflation and is considered proof against inflation as it can retain your purchasing power. Since it is a physical asset and has a defined value, gold is considered a safe haven. Whenever there is a threat of trade war like that of US and China currently or a terrorist attack, investor turn to moving their investment to safe haven like gold.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
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