Gold, the asset no-one seems to want
Article Abstract:
Gold has become less important as a store of value since inflation has been subdued. Gold is being sold to pay the debts of Asian countries and the European Central Bank will only hold a small proportion of its reserves in gold. Optimists see a reduction in sales of gold by central banks leading to a change in investors' perceptions of gold. Gold is more liquid than many other types of investment such as real estate and forestry, and it has uniformity of value. The long term future of gold is more promising than the short term prospects for the market, which depend greatly on central bank sales.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Goodbye gold
Article Abstract:
The price of gold has dropped since the United Kingdom government announced that it was selling more than half of the country's gold reserves, but the impact of a Swiss vote to break links between their currency and gold has probably had more impact on the price. Gold was seen as a safe investment, but the development of new investment vehicles and the lessening importance of inflation have made gold less attractive. Switzerland has more gold to sell than the UK, and other countries may sell gold, despite protests that they do not plan to do so.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Gold: debugging
Article Abstract:
A rise in the price of gold has been perceived as a herald of inflation, but the link is not so clear, argues Merrill Lynch. The link was seen in the 1970s when high gold prices and high inflation levels tended to go together. The rise in gold prices in 1996 could have more to do with supply and demand in the gold industry, Merrill Lynch argues. Gold also functions as a currency and the opportunity cost of investing in gold is lowered when currency risks rise and effective returns from currency holdings drop.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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