Gold fever or golden opportunity?

It was tipped to be a golden summer this year. That was at least the intention of our top athletes who would be participating in the Olympic Games. But things turned out very differently. Still, this summer seems to have had a golden lining: investors are going for gold this year.

Corona not only turned the sports calendar upside down. It also sent the stock markets bouncing in all directions this spring. This was followed by no less than a spectacular follow-up in the summer, with a hard-falling dollar leading to a remarkable run on gold. Our team of stock market specialists receive questions from investors about investing in gold on a daily basis. Is this perhaps the time to use – part of – your money to invest in the gold market? Is the gold price indeed going to rise further or are you – especially in these virus times – just wise to keep the fever in this market at bay?

Why has the price gone up so much?
The extremely low interest rates mean that investors see gold as a stable alternative to savings, leading to increased demand. But the less favourable economic outlook in the US, which has caused the dollar to lose value, also has an effect on the gold price. After all, gold is a safe haven in uncertain times and the Covid-19 virus creates a great deal of uncertainty and, therefore, volatile markets.

Should I or should I not invest in gold?
Gold is a regular part of the portfolio for some investors, but others just don’t like it. The latter group simply do not see the use of investing in gold because the precious metal has hardly any function or application except as a jewel.

Should you invest or not, and if so, is this the right time to do so now? You will ultimately have to make that assessment yourself and it depends on your personal situation. You are always advised to study the possibilities and risks of investing in gold before starting.

Golden tip?
Every day our stock market experts – Kaspar Huijsman, Taco te Gussinklo and Martin Totté – meet for a quick catch up about current trends in the financial markets. In addition, we discuss the most common questions that investors ask us so that we know what concerns them. This summer, most questions are about gold.

For this reason, we have studied the possibilities offered on the international stock exchanges and can answer all your questions about investing in gold.

Whether you want to invest in a beautiful gold piece of jewellery or a nugget, ETFs or a mining company, we will provide you more information about the possibilities, together with the pros and cons. So do not hesitate to contact us for more information about the gold market!

At Binck, portfolio managers are available for private consultations via telephone or Skype. You can also connect with Kaspar Huijsman, Director of Binck Spain and Portugal, via linkedIN or by email at [email protected].

Trading in financial products always involves a risk. The value of your investment may go down as well as up. As a general rule, you should therefore only trade in financial products if you understand the products and the risks associated with them.