World Gold Council: Gold Top H1 Performer
Posted by Brian Ford on July 18, 2014
The World Gold Council (WGC) revealed this week that gold’s 9.2% increase from January through June of this year puts the yellow metal ahead of almost all other asset classes. The WGC’s report noted that interest-bearing accounts, treasury bonds, many individual stocks, mutual funds and entire indices, and real estate trusts all fell short of gold’s 1H 2014 performance.
“So far, so good. Prices are up, volatility is down and gold has defied the bearish outlook that many gold analysts trumpeted at the beginning of 2014. Early indicators suggest that consumer demand remains resilient, even after a record year in 2013,” said the WGC’s gold market update.
The WGC attributes gold’s growth to a combination of central bank purchases, investment and jewelry demand, and a sluggish dollar. The report also mentioned that futures positions have been gradually overtaking short positions.
Investors are still looking at other asset classes because of low interest rates, but the WGC foresees investors focusing more on gold because of imminently rising rates as well as the lackluster performances of many “traditional” investments.
The report also noted that much of gold’s recent popularity could be attributed to the security of holding hard assets. While gold’s price volatility is quite high, it’s purpose for household investors is unchanging. “In our view, gold can provide much of the same protection as volatility-based vehicles, with the added benefit that gold investment vehicles are usually cheaper, more liquid, accessible, transparent and without credit.”
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gold analysts, gold market, wgc, World Gold Council