The price of gold rises and rises: Seven facts you need to know now, as an investor,

is it Worth it to access as an investor, now? Seven facts you need to know about Gold. fact 1: Gold throws off no interest. Luckily! Many institutional invest

The price of gold rises and rises: Seven facts you need to know now, as an investor,

is it Worth it to access as an investor, now? Seven facts you need to know about Gold.

fact 1: Gold throws off no interest. Luckily!

Many institutional investors have done for decades, a sheet of Gold. Because as beautiful as the precious metal may be, it does not accrue interest. Thus, the system depends on the success in Gold alone of the price development. However, in the last year and a half, has developed to an advantage. Meanwhile, around a third of all outstanding state throw and corporate bonds yields are Negative, so penalty interest instead of income. Thus, the interest-free Gold-is at once attractive. By the way: The volume of the world's outstanding bonds with a negative interest rate is the best explanatory factor for the gold price. The higher this volume is, the higher the precious metal is on the rise.

fact 2: Gold is not a safe investment

In the case of many private investors is still the myth that Gold is a safe investment. But that's not true. Also, the price of gold fluctuates – sometimes even more than the price of other forms of investment. So the swings in the gold market in 2013, significantly stronger than in the case of stocks and currencies. Anyone who invests in Gold, so it can exclude the value of losses by no means. About the experts

Chris-Oliver Schickentanz Chief Investment Officer Commerzbank AG. As a guest columnist he writes in January 2013, at this point regularly for FOCUS Online.

fact 3: On the long term, Gold is the purchasing power of

Gold is one of the systems for which we have already for many centuries, price indications and, accordingly, on a very long, thousand-year-old history can look back. The history books teach us two things: firstly, there are long phases in which Gold is not at all of interest to you and the price moved moderately as well. And for the second: in the long run the inflation adjustment is achieved with Gold. Gold creates in the cut a is just a positive real rate of return. With the precious metal manages to maintain purchasing power. A further asset accumulation takes place, but always only temporarily. Thus, Gold is less lucrative than, for example, shares.

fact 4: The price of gold does not depend (only) of the physical demand

Many gold proponents point to the fact that the demand for Gold is on the rise worldwide. This is in particular the economic rise of the emerging countries. The rising level of prosperity in the Emerging Markets leads indeed to physical Gold is more in demand. In particular, in India and China and has become established Gold in the Form of jewelry, coins and bars as a Status Symbol. From year to year grows, therefore, out of these countries, the demand by 3-4%. Nevertheless, the usually only to a lesser extent on the gold price. This is because the Central banks and investors, there are two groups that can move the price significantly stronger.

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fact 5: the costs!

jewelry, coins or bars, the aesthetic are the most Form, to invest in Gold. However, many investors forget, the cost in an adequate manner. A safe Deposit box or a safe with the appropriate insurance cost over the year, we expected quite a lot and minimize the return. In addition, only the price of the material is not in jewelry and coins, but also the demand behavior of others. This can quickly lead to negative surprises. Therefore, it has established itself, under the Complex aspects of Xetra-Gold. It is inexpensive, physically secured, centrally stored, and can be obtained when needed, actually physically. Who buys Gold in terms of returns, is discussed with Xetra-Gold, therefore, better than bullion, coins or jewelry.

fact 6: Gold is a geopolitical insurance

Gold is generally regarded as a geopolitical insurance. However, one may therefore expect no miracles. Gold can diversify a well-structured Depot and it is precisely in times of crisis, significantly more stable and robust alignment. However, the precious metal can not Shine in all the political crises and at any time. So, for example, Gold in 2017 has suffered during Turkey's crisis, even excessively. The reason: at that Time, the Turkish Central Bank sold a significant portion of their gold reserves in order to support the Turkish Lira. The insurance character of Gold only pays off in the long-term context correctly.

fact 7: The smaller siblings are currently more attractive

In comparison to other precious metals Gold truncates currently, only mediocre. Because of the strong price increases of the last two years in brackets increase in the price of Gold compared to its smaller siblings, silver, platinum or Palladium to be felt. From a Performance point of view, the the Gold are therefore preferred currently. But: Due to the significantly greater industrial use of the other precious metals, silver or platinum or Palladium come close to the long-term charm of Gold. Under the Hedging aspects of Gold thus remains the only alternative.

conclusion: Gold is not a panacea, but...

Gold is a good Portfolio and should therefore be missing in any investment. But it is also not a panacea, so that I would restrict the dose to a maximum of 10% of the total assets. Who speculated less on the hedge character of Gold, but rapid price increases hopes, in the short term, advise with silver, platinum and Palladium better.

on The subject of: fear of Corona-Virus - Gold approaches further record; price crack 1600 Dollar mark, René wants to return: So you can give your child to the age of 18. nearly 90,000 euros from the state FOCUS Online René wants to return: So you can give your child to the age of 18. nearly 90,000 euros from the state

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Date Of Update: 24 February 2020, 10:00
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