Financial Mirror on Nostr: Growing number of investors opting for gold - Financial Mirror ========== Gold is up ...
Growing number of investors opting for gold - Financial Mirror
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Gold is up around 12% year-to-date, but despite this impressive price jump, many investors are planning to continue to pile into the precious metal. There has been a 35% year-to-date jump in clients seeking to increase their exposure to gold. Central banks in developed countries are ramping up their gold holdings, citing the long-term value of gold, its robust performance during crises, and its effectiveness as a portfolio diversifier. China is buying gold to diversify its reserves and reduce dependence on the US dollar. Turkey and several nations in the Middle East are also increasing their gold reserves. The shift away from dollar-denominated pricing in the commodities market is driven by geopolitical factors and the use of the dollar as a tool for economic sanctions. Geopolitical uncertainty, such as upcoming elections in major economies, is driving investors to hedge against potential downturns by holding gold. Expectations of interest rate cuts by central banks also make gold more attractive to investors. The growing demand from both advanced and emerging economies, strategic diversification by China, the shift in commodities pricing, geopolitical uncertainties, and rate cut expectations are all reasons cited by investors to increase gold in their portfolios.
#Gold #Investors #CentralBanks #Diversification #GeopoliticalUncertainty #Commodities #InterestRates
https://www.financialmirror.com/2024/06/20/growing-number-of-investors-opting-for-gold/
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Gold is up around 12% year-to-date, but despite this impressive price jump, many investors are planning to continue to pile into the precious metal. There has been a 35% year-to-date jump in clients seeking to increase their exposure to gold. Central banks in developed countries are ramping up their gold holdings, citing the long-term value of gold, its robust performance during crises, and its effectiveness as a portfolio diversifier. China is buying gold to diversify its reserves and reduce dependence on the US dollar. Turkey and several nations in the Middle East are also increasing their gold reserves. The shift away from dollar-denominated pricing in the commodities market is driven by geopolitical factors and the use of the dollar as a tool for economic sanctions. Geopolitical uncertainty, such as upcoming elections in major economies, is driving investors to hedge against potential downturns by holding gold. Expectations of interest rate cuts by central banks also make gold more attractive to investors. The growing demand from both advanced and emerging economies, strategic diversification by China, the shift in commodities pricing, geopolitical uncertainties, and rate cut expectations are all reasons cited by investors to increase gold in their portfolios.
#Gold #Investors #CentralBanks #Diversification #GeopoliticalUncertainty #Commodities #InterestRates
https://www.financialmirror.com/2024/06/20/growing-number-of-investors-opting-for-gold/