The stock markets fall, Gold rises: three ways you can earn

In the Corona-crisis, investors resort to Gold. No wonder: Gold is the ultimate hedge. Whether because of Inflation or stock market Crash, war or Virus-threat –

The stock markets fall, Gold rises: three ways you can earn

In the Corona-crisis, investors resort to Gold. No wonder: Gold is the ultimate hedge. Whether because of Inflation or stock market Crash, war or Virus-threat – China destroyed now flock even the Bank notes due to any Viruses, Gold provides a value for the saved and receives liquidity. If the population loses the currencies of the Faith in the Paper, the time has come for Gold. Gold in Euro 1.490,53 EUR -1,75 (-0,12%), except over-the-counter To the course data

It is thus no coincidence that Gold with most other asset classes is little, or even negatively correlated. So the analysts of the U.S. banking house, Goldman Sachs calculated that Gold over the past 5-year period, with the stock markets in the United States (S&P 500), Germany (Dax) Japan (Nikkei-225), as well as the large Emerging Markets (DAXglobal BRIC), respectively, significantly negative correlations of minus 0.12 to minus 0,31. It seems to be counter to the shares. It looks similar a 1-year period.

This property makes Gold an ideal Supplement in a wide-ranging Portfolio. So far, Gold Ekes out a living but still in a marginal position, which is improving gradually. The global pension funds have started since 1998, to alternative investments such as Private Equity, but also precious metals to the Portfolio. In the meantime, this Appendix documents forms 26 percent of the portfolio, where Gold is still under-represented. This is especially the case since currently, the opportunity cost of holding Gold as interest income in the case of bonds, or demand deposits costs. Even the crisis-hit Greek bonds yield currently on the 10-year area of less than one percent. Focus money Alternative Investments: The global gold demand for investment has grown since 2001, an average of 14 percent per year. Nevertheless, the precious metal plays in most Portfolios, a very minor role. This should change slowly.

Gold: Perfect for diversification

Five percent of Gold in the Portfolio reduce in a long-term perspective, the volatility and the maximum Drawdown and the annualized return, the World Gold Council. In a larger portfolio, physical Gold ETCs (Exchange Traded Commodity) will be added to the first choice. Risk-tolerant investors can sit with gold producers shares and the inherent leverage to the gold price. You benefit twice and three times about the solid gold, the weaker Euro and the producers-lever.

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professionals recommend 20 percent of assets in Gold to keep

Gold is something Special. Who is holding a piece of gold in Hand, you will notice it. But also on the state side, Gold is an exception among many value systems. Because the precious metal is favored for tax purposes. So no VAT, and after a year the physical purchase of the holding period, profits are tax free losses can, however, be tax deductible. Other precious metals and commodities are at least occupied with 19 percent VAT and for other asset classes a withholding tax or Similar in the rule. As a Basic protection of physical Gold, therefore, belong in every Portfolio.

Physically investing in Gold

In General market rates of observers, to keep five to even 20 percent of the liquid assets in Gold. In times of crisis, Gold in own sphere, in the not-too-large piece of lung is just a guarantor for the liquidity. If you want to hold larger sums of money in Gold and not even take care of that, his little gem on prestigious precious metal dealer in a security camp in Germany and abroad. An Alternative are put with Gold and physically backed and secured gold certificates (Exchange Traded Fund, ETC) is where the delivery of gold in small quantities is possible. Because this system is equivalent to a tax of the physical Gold. Two examples of this Euwax are demands Gold and Xetra Gold with custodian banks require recently Deposit fees (before buying!).

gold mining stocks: added To

suitable ID cards in mid-February, Barrick Gold, the currently second largest producer of gold in the earth, and for many surprisingly good result for the fourth quarter and the total was year. The gold mining industry had been waiting for, that one of the Big shows, that the rationalization measures. In addition, Barrick Gold synergies could show up after the Takeover of Randgold. This was achieved also by the establishment of a Joint venture with the second Industry heavyweight, Newmont, for the activities in Nevada.

In the past few years, the gold mining stocks behind the rise in the price of gold had stayed back – even though you have a lever on the gold price. For one thing, a higher gold price increases the value of the reserves in the soil and larger quantities of economically exploitable, are. On the other hand he increases the profit margin of the producer, unless the costs are rising quickly, which is not currently the case.

For investors who expect a further rise in the gold price, this means a good conditions, also with the shares of gold companies positive returns to retract. This is even more the case if the industry is discovered as a system. Because currently, the 30 largest stock exchange-listed gold companies in the stock exchange value of Tesla on the scale. Even small shifts in the large investors would, therefore, cause strong price movements in the gold shares. Focus money gold mines and punished: poor management and high debt coupled with a weaker gold market, the shares of the gold mines from 2011 to 2016, brought strong pressure. The next gold price Rally, you should catch up most of the losses.

Investing in Gold ETFs

Who does not want to rely on individual shares, such as the two industry leader, Barrick Gold, and Newmont, with ETFs (Exchange Traded Funds) and actively managed gold mining funds, broadly in the industry to invest. To Takeovers in the gold mining industry in the coming months and years, and mergers and accompanying synergies are expected to come, appears just to have a look at the second and third series of interesting and Investments very promising.

An ETF that covers this Segment, the VanEck Vectors Junior Gold Miners . Among the actively managed funds of Craton Capital Precious Metal, the Earth Gold UI, as well as the very small Nestor Gold and GR Noah on emerging companies with high growth potential under the other. The Craton Capital Precious Metal Fund, for instance, has currently to approximately 61 percent to the gold sector. Silver and platinum metals shares as well as Cash holdings and Other share the Rest. Among the Top positions of the Nestor Gold , Yamana Gold , Discovery Metals and Perseus Mining, among others, Eldorado. In the GR-Noah-Portfolio, for example, Novagold Resources is weighted heavily.

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Date Of Update: 06 March 2020, 15:00
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