Measured in dollar gold price down 2.7 percent last month, but up 14 percent since January.
The recovery came after three consecutive years of decline and the gold price is still 36.3 percent below all-time high.
the recovery was partly due to US currency has weakened, but even measured in Norwegian kroner, the precious metal has been ten percent more expensive, Finance writes newspaper.
according to CIO Robert Naess in Nordea investment Management’s expectations of further price increases are not the only reason to buy gold.
– if the historical correlations recur, an exposure to gold could reduce risk in a global equity portfolio, he claims according to Finance newspaper.
Naess’s analysis shows that a portfolio of third gold and two-thirds MSCI global share index since 2004 would have had a volatility of 12.9 percent – compared with 18, 7 and 15.7 percent respectively for gold and stocks alone. In addition, the return for the combined portfolio have been over one percentage point higher than for equities.
So how are bought gold?
An easy alternative is listed gold fund SPDR gold (GLD) and iShares gold Trust (IAU). These are traded like stocks and costs thus little to buy or sell.
– GLD has existed since 2004, and the return has been the same as the gold price minus the annual fee of 0.4 percent, adding Naess facing financial newspaper.
Do you have a more advanced trading platform, you also get access to gold in the spot market.
Here traded metal in the same way as currency and can thus achieve very high gearing – typically up 500 times.
A third option is to buy physical gold, be it in the form of gold bars, coins or jewelry. One drawback is the newspaper said that transaction costs are higher than in the financial market.
Finance newspaper here!
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