Bring in your odds and ends, in gold, platinum, or even silver flatware…where you can get an honest appraisal. We can help you in buying or selling your gold. We can also assist you on whether to purchase platinum or white gold. We can teach you how to understand color, what’s pure, plated and natural.
GOLD is the quintessential anticyclical asset. In comparison to other commodities, there is no real correlation between returns on gold and changes in macroeconomic variables such as Gross Domestic Product, inflation and interest rates. Therefore, gold returns are less correlated with the returns on equity and bond indices than other commodities. Gold as an investment asset fulfills two related fundamental functions: it is a safe haven in times of financial volatility and it is a risk minimization tool.
A historical analysis of gold prices compared to the world’s equity markets reveals an inverse relationship between returns on equity markets and the gold price. Generally, as equity markets fall, gold prices rise. There is a solid correlation between geopolitical and financial market instability and rising gold prices, as demonstrated in the lead-up to the Iraq war.
The current market is strong and there are some indicators that predict even a higher market. But like the stock and bond markets, there will be an adjustment. I wish we were clairvoyant and had “coraggio” to jump in and out at the appropriate time!