$XAU/USD(XAUUSD.FOREX)$ $Gold Trust Ishares(IAU)$ $SPDR Gold ETF(GLD)$ $GLD US$(O87.SI)$
Gold - Hard asset - A physical commodity with value that is not associated just like a fiat currency.
In just a few years, gold has rocketed to all time high of above $5400/oz due to the middle east tensions. However, in just a few weeks, it fell nearly 18%![Spurting]
1) What is happening? [Glance]
Not a collapse. With the ongoing war, rising energy prices are triggering alarms globally. Turkey's $8 billion gold withdrawal is a measure to ensure sufficient cash flow for sustainability measure.
2) Will it fall further? [Facepalm]
Possible but uncertain. We would not know, but there is a possibility for other countries to act and ensure economic sustainability. Profit takers would also seize these opportunities to do trades too.
3) What would I do?
Gold is certainly not favorable to everyone but it does work out well as a hedge against economic pressure. For similar reason, it should stand a small position in my portfolio and a sharp decrease / increase shouldn't warrant a full sale of it.
> Besides, the main purpose is to hedge, not to profit.
> Nevertheless, if holding it out just like a long term investors, I'm certain it would rise higher in 10- 20 years time frame if we look at the history.
Finally, stay aware and confident on what you are investing. So your portfolio can reward you with what you expect. [Miser] [Love you]
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