NOW IS THE RIGHT TIME TO BUY
GOLD
“Gold right now may well represent a once in a life time opportunity for Australian investors,” said Jordan Eliseo, the Chief Economist, ABC Bullion.
“The recent fall in gold price offers an opportunity for investors to get in at a discount price, with a range of bullish factors likely to push prices substantially higher over the next five years,” he said.
Eliseo was speaking at the ‘International Precious Metals & Commodities Show’ in Munich about Australia’s opportunity to take advantage of buying gold.
The ‘International Precious Metals & Commodities Show’ is an international conference dedicated to investments in precious metals and commodities that has taken place annually in Munich since 1985.
“Right now sentiment towards precious metals is at record lows – which typically means we’re getting close to a bottom,” Eliseo said.
“Gold is the only asset that has not only endured, but prospered throughout every period of economic turmoil the past five millennia have thrown at humanity,” he said. “It’s pretty bold to think this time will be any different.”
Eliso said that gold was undervalued as an asset despite its importance to Australian economy. “Australia is the second largest gold producer in the world, and while it has consistently outperformed most traditional assets for a decade, it is not represented at all in mainstream portfolios.”
“The biggest demand for physical gold is the Asian market, in particular the Chinese, and we would do well to treat gold, not just another commodity export but as a key plank in furthering our banking and wealth
management relationships with our
neighbours to the north.
Eliseo said that gold also provides a
strong hedge against the falling AU$ as
well as offering a balance to overall
portfolio volatility through low
correlations.
“With the currency likely to be
under pressure in the coming
years, gold is perhaps the
smartest way of getting
non-$AU exposure into a
trustees portfolio, as it will also
balance out equity market risk,”
said Eliseo.