Who Would Want to Buy Gold

Jordan Eliseo

ABC Bullion

Pessimism towards the precious metal market intensified this week, as neither the ongoing drama in Greece nor the market crash in China could put a bid under bullion. It's inability to rally in such a 'risk off' environment exasperated bulls, and a break below USD $1140oz can't be ruled out. Despite that - the rationale supporting a gold position received a boost (unintentional) from PIMCOs Australian head of portfolio management - when he recently stated investors need to 1. Acknowledge the real risk-free rate of return is now negative 2. Be mindful of risk in instruments used for income generation 3. Focus more on expected capital price volatility of holdings 4. Ensure there is sufficient risk-factor and geographic diversification in portfolios Holding gold in a portfolio helps protect against all of the above, not that you'd know it now, with sentiment terrible, net long gold specs at their lowest level in a decade, and short positions at their highest level in years (see chart) It's brave calling a bottom in any market, but there's fertile ground for a rally (VIEW LINK)

Jordan Eliseo
General Manager
ABC Bullion

Gold and precious metal bull since early 2000. Have spent +25yrs working in investment analytics, research & portfolio construction, with a primary focus on the role of precious metals in investor portfolios. Author of two books on investing in...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment