Sunday, December 26, 2010

Strategic view gold investment opportunities

First of all, to have some gold to hedge against inflation. Inflation expectations in the market when the price of gold rose in advance. Currently, the currency depreciation in the global context of high inflation seems inevitable.
Second, gold investment risk in a diversified portfolio has a very good role. Over the past four decades, the major stock market crash, gold is often a very good performance. In addition to the fourth quarter of 2008, when the stock market crash, a little bit of gold declines, the other are positive gains. Gold prices in the best times of economic crisis, the 1980s oil crisis, which is the highest point. From a risk perspective, the last three years, ten years the volatility of gold relative to other major asset classes is low.
The long view, the current U.S. economy and the Federal Reserve under the action of quantitative easing, the dollar's weakening trend will be a high probability events, while inflation expectations are still lingering. Inflation expectations and the weak dollar is the continued support of gold, and gold prices rose overall is expected to present difficult or easy to pattern. In addition, the vast majority of investors believe the debt crisis is far from over in Europe, which will support gold prices. Therefore, the gold is for investors with a very important strategic significance.
The development of private gold investment are very fierce. Many people with the gold by buying stocks and funds related to investment in gold.
Domestic gold funds still in its infancy, only Lion gold fund a follow-up will also have similar funds appear. China's gold fund is designed to support physical gold investment gold ETF. This is a similar physical gold held by the nearest way of pure gold investment, the investment strategy is to buy and hold investors can clearly track the movement of gold to invest in operations.

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