Gold Miners Investors Change Their Mindset
” At Gold Miners Research we are constantly looking to bring you the latest gold miners news, gold miners editorials, gold miners videos and gold miners investors advice. Therefore it is important that you keep checking this site so you do not miss out on anything important. As we are always looking to update our site with quality content. Today we are posting a new editorial about the global gold miners investors mindset. Enjoy!!”
The global investor market place is currently focused on wealth protection and insuring against downside risk, rather than on finding outsize returns.
This is one of the reasons behind the massive increase in intrest in gold seen over the second quarter of 2010 says Jason Toussaint, MD for investments at the World Gold Council.
Speaking on Mineweb.com’s Gold Miners Weekly Podcast on the day the WGC launched their Gold Demand Trends publication for the second quarter of 2010, Toussaint, said, “The majority of the inflows year-to-date of that 253 tonnes [of gold miners investment] occurred during the months of May and June. If we rewind the clock back to then and understand what was occurring in the world at that time, we had lingering effects from the currency crisis in Europe, the re-emergence of worries about the future of the global economy and the ability of governments globally to pay their sovereign debt – so a sovereign debt crisis of sorts.”
He added that the growth in gold miners investment interest was particularly noticeable in Europe where both ETFs and bar and coin demand rose.
“Certainly for the first half of the year, there was acknowledgment globally that the effects of the global crisis are far from over. So gold miners investors are becoming more conservative and particularly in Europe these figures indicate there is re-acknowledgement of gold investment – in this case, physical.
But, Toussaint believes that while this spike in demand, especially in Europe is partly the result of sentiments around the likelihood of further financial turmoil to come he says a far more important reason is that the view of gold as only useful as an investment of last resort is becoming antiquated.
“What we’re seeing now is more of a move in understanding of gold’s role as a strategic asset class for the long term. And let’s not forget, against the backdrop of 2008, when most global equity markets return negative 50% or more – having an investor lose half of their wealth and then buy gold, is kind of too late.
“So, investors say we’re either really good at predicting future crises which are occurring more frequently, or should we have some gold in our portfolio up to a certain percentage, which they deem appropriate for the long run – in case there are future shocks that there will be this kind of portfolio baseline asset that will protect at least a portion of our wealth.”
Indeed, Toussaint maintains, there has been a paradigm shift in the investment segment of the market, which was led by the rise of the gold backed exchange traded fund.
“In the second quarter we had 1,050 tonnes of aggregate demand – that’s a 36% increase year-on-year against the gold price at the same time that was going up – increased by 30%. So although the price of gold went up, the total demand went up and to your point the investment segment really led that.
” ETFs… made gold investable to many classes of investors, really for the first time – because if we look back before the ETFs were introduced, transacting and investing in physical bullion required you to find a place to transact it, which then requires you to understand price discovery mechanisms….those extra hurdles of investment put a cap or limited the investor market place.”
Provided by: Geoff Candy from http://www.mineweb.com
Excellent read, I simply passed this onto a colleague who was doing a little analysis on that. And he truly purchased me lunch as a result of I found it for him smile So let me rephrase that: Thanks for lunch! Anyway, in my language, there should not a lot good source like this.
I was very happy to seek out this site.I wished to thanks for this nice learn!! I definitely enjoying each little bit of it and I have you bookmarked to take a look at new stuff you post. Anyway, in my language, there usually are not much good supply like this.
Oh interesting stuff!
How about another blog like this? It was good. I took creative writing back in school, and this has the two most important segments of a good article, engaging and fun to read. Thank you.
F. Wilson
web marketing boulder co
Love all the opinions expressed here! How is everyone? Love how everyone expresses whatr they feel
Thank you for this post. I am new to your blog and get really very nice. I will keep visiting your blog.
Kudos to you! This is a really good blog here and I love your style of writing. How did you get so good at blogging?
I dont usually leave comments but i have to tell you awesome job
I dont usually leave comments but i have to tell you awesome job
Major thankies for the blog article.Really thank you! Much obliged.
Thank you so much for the informative blog posts this particular informations very usefull!!. I am going to share this with all of my friends.! Continue the excellent work!!!. Anyone should take the time to publish web content pretty much as good as this one and never saturate the internet with nothing;
Your web site is just what I’ve been browsing for. This is a very enlightening read. If every writer would be as human being specific just like you, daily life could be far more easy.
I got here here from aol for finding some data about my website, but sad to say I am not learned some tips i was looking for. But this post Gold Miners Investors Change Their Mindset | goldminersresearch.com is a great post! many thanks!
I like this blog layout One of the greatest I’ve seen. But if you really want to make money visit http://www.monetizationforums.com
I loved what you may have carried out right here. The design is elegant, your penned information stylish. Nonetheless, you’ve bought an edginess to what you are supplying the next. Unwell absolutely arrive again once again for a great deal a whole lot more in situation you protect this up. Dont wipe out hope if not too many women and men see your imaginative and prescient vision, know you have got acquired a fan appropriate the next who valuations what you’ve got to say along with all the way you’ve presented on your own. Very good on you!
Amazing freakin blog here. I almost cried while reading it!
*Your site is super I will have to read it all
nist port thans this post
some really superb info , Gladiola I found this.
I think other website owners should take this site as an model, very clean and excellent user pleasant style .
Thanks for sharing such useful information.
Hi there! This is my first comment here so I just wanted to give a quick shout out and tell you I really enjoy reading through your articles. Can you suggest any other blogs/websites/forums that cover the same topics? Thanks a lot!
You made a few nice points there. I did a search on the subject matter and found most people will have the same opinion with your blog.
now this is the kinda of stuff i like to read about thanks for brightening my day
All I can say is stay the best. Some professional bloggers post 3-4 times a day on the blogs, simply because this constant addition of new content helps them how to get regular readers.
I’m interested to know if it’s viable to borrow a paragraph of this post to use for my research project.
Hey, It looks that youve been posting for a while and I am impressed by your commitment that you have towards your blog. I Hope that your going to keep it up because I do really enjoy your content. Thanks Nick.