Gold Investment Digest Report July 2010
A new report shows gold continues to retain its allure as an investment asset.
Mixed economic news around the world, concerns over a double dip recession and significant fiat currency weakness meant gold performed well during the second quarter of 2010, according to the World Gold Council's latest Gold Investment Digest report.
The report shows that the quarter recorded significant net inflows into various investment vehicles, as investors sought to harness gold's investment benefits at a time of weakness and pronounced volatility in other asset classes. While demand from China has remained resilient, the report also suggests that jewellery demand in other key markets (particularly India) has continued to recover from a weaker 2009.
The report also shows that during the last three months many assets, including global equities and commodities, experienced a period of pronounced volatility, in some instances surpassing levels seen during the first quarter of 2009. Gold price volatility, however, remained much lower than many of these assets during the period, meaning gold outperformed the S&P 500 (Total Return) Index, the MSCI World (ex US) Index and S&P Goldman Sachs Commodities Index on a risk-adjusted basis.
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