Gold outperformed most major assets
By Jeff Miller http://www.diamonds.net
The World Gold Council's Gold Investment Digest, analyzing second quarter 2011 market trends, found that gold outperformed most major assets during the period. Gold’s low average volatility of 13.4 percent for the second quarter was well below its long-term 20-year average of 15.8 percent, the Council reported today.
Juan Carlos Artigas, investment research manager at the World Gold Council, said, ''While commodities exhibited heightened levels of volatility and sharp falls in price during the month of May, gold’s volatility was modest and its price remained stable.
''Gold’s attributes make it a valuable strategic asset that investors can use to manage risk during periods of economic uncertainty. Holding gold in a portfolio enables investors to optimize the balance between return and risk,'' he concluded.
The Gold Investment Digest reported the average gold price during the second quarter was $1,506.13 per ounce, which was 8.6 percent above the first quarter's average. Gold-backed exchange traded funds (ETFs) experienced strong net inflows adding a collective 46 tonnes of gold to a total 2,155 tonnes, worth $104.2 billion, in holdings. Global central bank net purchases during just the first half of 2011 have already surpassed the total for 2010 with emerging market banks being the driving force, led by Mexico.
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