9 Jul 2020
Market Metrics: 30 June 2020
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Gold is a store of wealth.
This is undisputed fact and has been the case for millennia however the problem with investing in gold is that it does not multiply. A bar of gold does not produce baby gold ingots.
Gold is also purchased heavily during times of significant fear as has been the case over the past 6 months.
Almost all asset prices (stocks, commodities, currency and interest rates) have posted a negative return apart from gold which has jumped a massive 27.4% for the 12 months to 30 June 2020.
Click for chart.
Now before everyone suffers a bout of gold fever we remind you of one of Warren Buffett great quotes for investing…“Be fearful when others are greedy. Be greedy when others are fearful.”
Mr Market is definitely fearful at present and it is always a good time to buy more quality assets when prices are discounted.
WARNING, this does not constitute Personal Advice and to discuss if this is appropriate for your given circumstances please do not hesitate to contact us directly.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.