|
Why invest in Gold?
|
|
Important factors helping gold prices are:- Underperforming equity markets — gold is negatively correlated with the S&P 500.
- Deficit spending and zero real rates of return on T-bills trigger a weaker dollar.
- Gold mining companies have announced a continued reduction of hedge programs.
- Continued presence of physical demand despite real price rises.
- Renewed fund interest has seen hedge fund position on COMEX rise to levels seen in 1996.
- Investment demand in Japan has risen five fold over the past year.
- Changes in the supply side due to falling new gold mine production are bullish for bullion prices.
|
|
 | Slide 3/25 |  |
|
|