BY GAVIN WENDT, MINELIFE PTY LTD
‘If you don’t trust gold, do you trust the logic of taking a beautiful pine tree, worth about $4000–5000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it $1 billion?’ – Kenneth J. Gerbino.
We’re reviewing interesting recent developments with respect to gold. According to the World Gold Council’s (WGC) midyear outlook, gold will likely shine over the next 6–12 months, as heightened risk meets easy money.
Gold ranked as one of the best-performing assets through the first half of 2019, beaten only by stock markets – which have also been supported by the turn toward looser monetary policy – and oil. And if you combine gold’s gains through H1 2019 and Q4 2018, nothing beats it. While US stocks made significant gains in dollar terms over the first six months of the year, they actually lost values when priced in gold.