Deep Dive: 'Little reason' to expect disruption to precious metals rally

'Well-supported' demand for gold

Valeria Martinez
clock • 6 min read

A weaker dollar and geopolitical tensions have pushed precious metals, such as gold, to near record highs in the past year, but experts expect the demand will be sustained and well-supported in the long-term.

Gold, arguably the most popular precious metal, has produced strong returns and outperformed most assets other than equities in developed markets this year, said John Reade, markets strategist EMEA at the World Gold Council. This asset class has been historically used as an effective hedge because it is uncorrelated to other asset classes, he argued, and does not suffer the same devaluation of income producing assets. Silver also experienced a surge in global demand last year, rising 18% to a record high of 1.24 billion ounces, creating a huge supply deficit, Silver Institute revealed...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Alternatives

Trustpilot