Gold News

Gold Investing: "Opportunity Cost Low"

THE OUTLOOK for Gold Investing "remains bullish" thanks low interest rates and continued economic uncertainty, according to a bullion bank's research note today.

In particular, says the latest Metal Matters from Scotia Mocatta – one of the 10 market-making members of the London Bullion Market Association – US Treasury bond yields are near record lows, making "the opportunity cost of holding gold low."

Physical Gold Investing pays no interest, of course. But nor does "safe haven" government debt today, meaning there's nothing lost in holding gold rather than bonds.

"The market needs to be fully aware that the bullish argument for gold will change once investors feel that the global economy is on the mend and solutions have been found to sort out the financial mess," today's report warns.
"However, there seems little chance of this happening any time soon, and with that in mind the outlook for gold remains bullish."

Gold Investing today? Start with this free gram of physical gold safe inside a Zurich vault at BullionVault now...

See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals