WGC Highlights Gold’s Lasting Appeal and Shine

SEATTLE (Scrap Monster): In a conversation on gold on Fidelity International's MoneyTalk podcast, John Reade, Chief Market Strategist at the World Gold Council (WGC) highlighted on the prospects of gold in a world of extreme challenges and the lasting appeal of the yellow metal.

Reade noted that gold is an attractive looking metal, which doesn’t corrode as other metals. Although it is not used as a currency, it has been part of the financial system since old days. It has managed to hold its value over a long term and has proved to be a true portfolio diversifier, especially at times of high inflation. In fact, investors have reached to a point that there are no other alternatives to gold to protect their assets during high inflation.

Gold is cheap to store, compared with other assets such as oil and natural gas which requires huge storage costs.

According to Reade, gold has delivered 25% returns even amidst Covid-19 pandemic crisis. On an average, gold has delivered around 8% annual returns since 1970s. The anticipated U.S. Fed rate hikes during the course of the year should augur well for gold. Over the long-term, gold has the potential to act as a source of decent returns, he added.

Reade noted that WGC always advises investors to put money on gold rather than investing in gold mining companies.

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