Despite the pullback that we have seen in the USD gold price in 2022, it’s not been all bad news for precious metal investors. In most other currencies, including Australian dollars, the gold price has risen this year, with the negative sentiment surrounding the precious metal today largely driven by the huge rally in the value of the US dollar, and the aggressive interest rate hikes that we’ve seen in the United States.
This November, ABC Bullion is partnering with the bullion industry to raise money for Tour de Cure to fund ground-breaking projects that will help cure cancer and change lives.
For every ounce of gold, kilo of silver, and ounce of platinum bought in the month of November, ABC Bullion will donate $1 to Tour de Cure.
Like the gold price, silver is also influenced by a range of macroeconomic factors, including but not limited to inflation rates and the direction they are heading, movements in value of the US Dollar, and changes in interest rates.
While most asset classes have fallen in 2022, it has been cryptocurrencies that have led the market lower, with Bitcoin having fallen by just over 60% this year, currently trading near USD $20,000 per coin.
Gold by contrast, though falling in USD terms, has risen in many developed market currencies, including Australian dollars, and has also outperformed most other asset classes, from stocks to long-term bonds, helping minimise overall risk within traditionally managed portfolios.
Despite the difference in performance between the two asset classes that we have seen in 2022, there are many crypto advocates that are still arguing that not only is Bitcoin a form of ‘digital gold’, but that it will inevitably replace the real thing in investor portfolios in the years to come.
We remain unconvinced by this argument, with our latest blog post highlighting several factors, including changing demographics and relative market size, that combined illustrate why we don’t think gold is in any danger of being replaced by Bitcoin.
Volatility is often seen as a bad thing by investors, with many using it as a substitute for risk. In simple terms, the more volatile an investment is, the riskier people think it is.
On Monday September 5, Jordan Eliseo, Manager – Investment Research and Product Development sat down with John Reade, the Chief Market Strategist for the World Gold Council, at our brand-new refining facilities located in Marrickville, New South Wales.
One of the interesting myths regarding gold as an investment is one that suggests it only does well in periods the US dollar (USD) is falling. Indeed, some analysts go so far as to say that it’s the “anti-dollar”.
Gold is a widely known and highly trusted inflation hedge.
By this, we mean that investors as a general rule expect that gold will hold, or even increase in value during periods that consumer prices are rising rapidly.
Concerns about high levels of inflation are front page news again in 2022, not only in Australia, but in Europe, and in the United States, with consumer prices in the latter rising by more than 9% in the 12 months to end June 2022.
In May this year, The Reserve Bank of Australia (RBA) increased interest rates by 0.25%. It was the first time they’d hiked rates since 2010, with most Australians under the age of 35 having never seen an interest rate rise in their adult lives up until that point.
While it doesn’t get anywhere near as much attention in the financial news media as gold does, silver is a very popular asset amongst precious metal investors, and one that can deliver very strong investment returns.
Silver, with its unique industrial and economic capacities, should not be overlooked by investors looking to diversify their portfolios. However, many of our clients struggle to identify the most effective ratio of gold to silver exposure in their investments for their specific goals and outcomes, and how to capitalise on the gold-to-silver ratio (GSR).
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his week, ABC Refinery's Global Head of Institutional Markets, Nick Frappell, took some time to provide some insight and analysis on what drives gold and silver positioning, particularly centering around the CME.
A common misconception when it comes to investing in precious metals is that putting large sums of money into gold all at once is the only beneficial and efficient way to invest in gold. While this is a valuable option for some, and one that ABC Bullion frequently facilitates, it is often more accessible for investors to trade regularly, frequently, and in smaller amounts. Here are five reasons why it can be valuable for investors to buy small.
It takes only a couple of minutes to open an account online with ABC Bullion. Simply complete the appropriate online application and enter your government issued ID details to complete the verification process.
It’s a tool that many gold investors will never have to use. So, why is the gold spot price important and how does it affect your investment? As the benchmark price for gold, the spot price influences every gold investment, from bullion and coins to jewellery.We explore the dynamics of the gold spot market and its relevance to everyday investors.
It can be difficult to ascertain the sustainability measures undertaken by businesses you trust. We believe it is paramount to be an informed buyer of precious metals and investment assets, which is why ABC Bullion places an uncompromising focus on receiving and maintaining accreditations that assure you of our actionable sustainability measures.
Silver, chemically represented as Ag, is one of the most useful commodities in the world and can be valuable to any investor’s portfolio. However, what is it about silver that cultivates the nickname ‘the miracle metal’, and how does this affect silver on the investment market?
Gold benefits from diverse sources of demand: as an investment, a reserve asset, jewellery, and a technology component. It is highly liquid, no one’s liability, and is scarce, historically preserving its value over time.
Today we investigate the supply and demand issues currently impacting platinum and palladium, and how this could lead to a potential price move.
One asset class that could well benefit trustees reviewing their SMSF strategies is physical gold, which has delivered strong returns that have either matched or even exceeded those on offer in shares, property and cash over the past 15 plus years.
To help make the process easier and to ensure you’re purchasing the highest quality gold, here’s a comprehensive guide to buying gold bars.
What is dollar cost averaging?
Dollar cost averaging is an investment strategy wherein investors purchase a predetermined fixed-dollar amount of assets at regularly scheduled intervals regardless of the price of the asset at the time of the trade. An example of dollar cost averaging would be for an investor to buy $5,000 worth of gold every quarter rather than a lump sum of $20,000 worth of gold for the year. Note that the investor chooses a fixed dollar amount, $5,000 per quarter, not a fixed amount of gold, say 500 grams.
Rarer than gold and platinum, palladium is a versatile, durable, and attractive metal that is gaining more and more popularity. If you are interested in purchasing fine jewellery or investing in precious metals, consider buying palladium and adding it to your investment portfolio.
Today we looking at the investment case for both platinum and palladium.
Now platinum and palladium are part of what’s called platinum group metals (PGMs)…which are actually comprised of six metals: platinum (Pt), palladium (Pd), iridium (Ir), osmium (Os) rhodium (Rh) and ruthenium (Ru).