Gold Trade Body Proposes Good Time to Buy Gold

SEATTLE (Scrap Monster): The World Gold Council (WGC), in its latest report, has suggested good time to buy gold. It provides a guide for potential gold investors to make informed decision on gold purchases.

With specific focus on Australian gold market, WGC notes that the gold prices are mainly a reflection of the demand and supply situation. A basic understanding of these drivers would help one to have a good idea on gold’s performance.

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Based on historical data, investment demand accounts for nearly 38% of the total gold demand. This is followed by jewellery (7%), Central banks (18%) and technology sector (7%). Being the primary source of demand, investment demand has the potential to exert strong pressure on gold price over the short term.

Although there exists no standard diversification model, a prudent investor always tries to diversify his portfolio with addition of assets such as gold. The yellow metal also plays the role of defensive asset in one’s portfolio. Moreover, it offers liquidity to the portfolio, WGC report said.

Gold in portfolio offers insurance over the medium to long term to safeguard it from unforeseen market events. The good time to buy gold solely depends on the investor’s strategy and objectives.