Fundamental drivers remain unchanged.
GOLD DISCOVERIES DECREASING
Analysts predict peak gold in 2018 because of declining reserves and lack of long-term production capability
Supply and demand pressures support gold’s upward trajectory. Fundamental drivers of gold demand remain unchanged while supply is constrained by low discovery rates, rising costs and jurisdictional risk.
GOLD! A CURRENCY OR A COMMODITY?
Gold is a great way to diversify a portfolio due to its low correlation to most other asset classes including equities, bonds and the U.S. dollar. Unlike other commodities, gold tends to retain its value during recessionary and deflationary periods. Gold is also a historic safe haven, acting as a hedge against domestic currency depreciation as well as falls in equity and credit markets.
Gold’s performance historically and over the last few decades vindicates its status as a valuable diversifier, surging relative to other investment classes. We believe it will continue to do so because gold is more than a mere commodity, it is a currency.
“Gold Is Money, Everything Else Is Credit” JP Morgan