Author: James Alexander Michie
Over time, gold has certainly had a bad reputation. Likewise, 2018 has been a year in which gold has especially faded. Its price has plummeted by 8%, to around $ 1,200 an ounce, and is out of more than 35% from its peak of $ 1,900 in 2011. As additional damage, Vanguard will soon re-baptize the largest US-based mutual fund. gold and it will keep your focus away from the metal.
Now, if a comparison is made with stocks and other financial assets, gold seems cheap. In addition, inflation is beginning to rebound in the US. UU and in much of the world as central banks reduce their huge balance sheets. Gold has symbolized a good defense against inflation that erodes the value of a portfolio of stocks or bonds. Over time, it has maintained its value against the dollar. Gold was $ 20.67 an ounce 100 years ago.
According to Keith Trauner, co-owner manager of the GoodHaven mutual fund (ticker: GOODX), which owns Barrick Gold (ABX), a leading mining company "Gold is rare, and it is difficult to quickly increase supply", he added. "Historically, the people have seen it as a protection against the depreciation of the local currency government. " Similarly Trauner said "Virtually all governments in the world are trying to promote inflation in part because there is so much sovereign debt" and also established "Politicians, when they have the opportunity, will choose the latter".
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