It's interesting that the MSM is now talking about gold as an investment. (Story in The Australian Newspaper today) Why gold should be in your portfolio JAMES KIRBY Australian investors moved heavily into gold during the crash last year with overall inflows up 100 per cent while high net worth investors tripled their holdings in the yellow metal. The swing by private investors – as opposed to big super funds – is revealed in a new research report from the Perth Mint’s investment research manager Jordan Eliseo. Needless to say most gold industry reports wax lyrical on the charms of the yellow metal and this report is no exception to the tradition. It does, however, put some very persuasive numbers around the case for gold as an investment choice: Importantly the case is made equally for global gold (always priced in $US) and for local investors using Australian dollars. Gold is currently staging a mild rebound – for the year to date it is almost changed but it had a strong run over the last month rising around 3 per cent. Currently trading near $US1890 gold has moved up from $US1200 over the last three years. Over the long term – that is, over the last five decades since 1970 – it has managed an 8 per cent price increase per annum which many investors struggling with poor cash and bond returns would seriously welcome. As any gold enthusiast will argue on any given year the megatrends of the moment would seem to favour the metal greatly. No surprise then that ageing demographics, high private and public debt, a reversal of globalisation and the potential for inflation to break out are here referenced as favourable for the gold price. Either way the numbers speak loudly: Australian investors lifted their gold holdings at the Perth mint by 100 per cent to $US4.5bn ($5.9bn) last year. Inflows into the mint’s locally listed exchange traded PMGOLD rose 180 per cent. Meanwhile, very wealthy “high net worth” global investors lifted their allocations from around 1 per cent to 3 per cent of investment portfolios, according to the UBS Global Family Office......................................... https://www.theaustralian.com.au/bu...dium=&utm_campaign=&utm_content=&net_sub_uid=
