Gold News

Gold 'less volatile than other assets'

The events of the last three months have confirmed that gold investments can be less unpredictable than other types of assets, it has been claimed.

According to the World Gold Council's (WGC's) latest Gold Investment Digest, high levels of volatility have been rife across the markets in recent times, with investors turning to gold bullion and its safe haven status as a result.

Gold price volatility peaked at 28 per cent during the first quarter of 2008, yet other commodities, along with equities, saw higher levels, the WGC said. Furthermore, gold continued to bring higher returns for investors than the bond and equity markets.

Indeed, the Business Standard reported this week that the last three months have been the worst quarter in ten years for equities - suggesting that now may be the time to buy gold and potentially take advantage of any future upswings in the price of the yellow metal.

"The ongoing credit crisis and increased market volatility in the first quarter caused investors to seek safe haven investments, pushing the price of gold to a new all-time high," commented Natalie Dempster, investment research manager at the WGC.

"Although the gold price did not escape the volatility of the markets entirely, it did remain less volatile than other asset classes."

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