Investing physical gold continues to shadow real interest rate

Investing physical gold continues to shadow real interest rate movements; with core CPI data beating estimates, expectations for monetary easing remain intact. Equity analysts flag that gold could challenge $2,400/oz if central bank dovishness deepens. Physical gold thus stands as a strategic hedge. Terms and Privacy Policy Your Privacy Choices CA Privacy Notice More Info “At Midas we suggest that most investors put none of their portfolio into gold in bullion form. Gold bullion has a negative return on equity due to storage, insurance and other holding costs. Investing in certain gold mining companies, in contrast, not only offers an inflation hedging ability through company ownership of gold deposits, but also excellent potential for current returns. A good vehicle through which to own gold mining companies would be a mutual fund. But gold investing, like commodity investing generally, should be considered speculative since commodity prices are dependent on macroeconomic political, industrial, and financial factors that are unpredictable, and in some cases, unknowable. The amount of the allocation depends on three main factors: the investors age, risk tolerance and overall asset holdings. The younger the investor, the higher the allocation to gold to allow the long term capital appreciation potential of gold to be achieved; older investors requiring asset stability and current income should have a smaller allocation.” Real-time market heatmaps show sector red across financials and consumer cyclicals, enhancing gold’s appeal as a capital preservation tool. Investing physical gold remains a high-conviction trade among macro strategists tracking equity drawdown risks.