Gold sizzles as world economy fizzles: Will 2020 be the year of the yellow metal?
On Akshay Tritiya, CIO (Debt) of Kotak AMC on gold as an asset class
By ET CONTRIBUTORS | Updated: Apr 26, 2020, 01.10 PM IST
Reuters
By Laskhmi Iyer
Gold was the ‘Student of the year’ for 2019 with a spectacular performance vis-a-vis financial asset classes. This came as a huge respite for gold lovers, especially Indians who have a a natural tendency to own gold – at times way beyond what may be needed. Hence the joy may be outflowing to gold investors as the winning streak continues well into 2020. In 2020, year to date, gold has returned ~21% annualised return!
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So, what justifies this gold rush?
For starters, gold is an asset which has to be mined, and there is no other way to produce gold. This is unlike the currencies which can be printed to infuse liquidity into the financial markets. Here, gold assumes the role of the ‘last person standing’ as faith in fiat currencies falter.
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The deadly coronavirus outbreak has led to a sharp decline in the world economic outlook. There are reports that suggest the worst-ever global outlook since the great depression of the 1930s. Even if that is exaggerated, the fact remains that over 40 central bankers have rushed to ease the monetary conditions to combat the medical crises the world is facing. Thus it is no surprise to see the solid innings gold continues to play in the current year as well.
Sourcr:https://m.economictimes.com/markets...the-yellow-metal/amp_articleshow/75387570.cms
On Akshay Tritiya, CIO (Debt) of Kotak AMC on gold as an asset class
By ET CONTRIBUTORS | Updated: Apr 26, 2020, 01.10 PM IST
Reuters
By Laskhmi Iyer
Gold was the ‘Student of the year’ for 2019 with a spectacular performance vis-a-vis financial asset classes. This came as a huge respite for gold lovers, especially Indians who have a a natural tendency to own gold – at times way beyond what may be needed. Hence the joy may be outflowing to gold investors as the winning streak continues well into 2020. In 2020, year to date, gold has returned ~21% annualised return!
ADVERTISEMENT
So, what justifies this gold rush?
For starters, gold is an asset which has to be mined, and there is no other way to produce gold. This is unlike the currencies which can be printed to infuse liquidity into the financial markets. Here, gold assumes the role of the ‘last person standing’ as faith in fiat currencies falter.
ADVERTISEMENT
The deadly coronavirus outbreak has led to a sharp decline in the world economic outlook. There are reports that suggest the worst-ever global outlook since the great depression of the 1930s. Even if that is exaggerated, the fact remains that over 40 central bankers have rushed to ease the monetary conditions to combat the medical crises the world is facing. Thus it is no surprise to see the solid innings gold continues to play in the current year as well.
Sourcr:https://m.economictimes.com/markets...the-yellow-metal/amp_articleshow/75387570.cms