| Investors rush to the gold market |
Prudent investors often hold a proportion of their portfolios in commodities for the sake of diversity. Some buy when they expect inflation to rise; others dip in occasionally, resorting to certain of these markets as safe havens when equity and bond markets are on the slide.
But the sharp rise in the gold price over the past 12 months may be pointing to a broader change in sentiment among investors.
Last month – in marked contrast to the world’s slumping equities indices – gold broke through $370/oz.
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