Younger people going for gold? « Mining Blog

Younger people going for gold?

14. November 2011,

Gold traders are at their “most bullish” since 2004, according to Bloomberg, as physical holdings in ETF (Exchange Traded Funds) are close to their all-time record [See: MiNING.com, 13 November 2011].

The obvious reason for this, according to the news service, is that investors are accumulating the gilded metal to “protect their wealth” from the widening European debt crisis.

Twenty-one of 22 traders, surveyed by Bloomberg, expect the price of gold bullion to rise on the Comex [Commodities Exchange] in New York this week: on 11 November 2011, it was trading at just under $1,790 an ounce – somewhat below its all-time high of $1,900 at the end of August.

Last week, holdings in exchange-traded products backed by gold rose by 27.5 tonnes.

MINING.com reported that, according to a new report by MarketWatch, gold’s allure is “shifting to a new generation”, with “many people in their 20s and 30s hav[ing] little faith in equities and, unlike older investors, [being] more inclined to consider alternative investments. Others seek tangible, hard assets as a counterweight to stocks, bonds and cash in the aftermath of the 2008 US financial crisis”.

In my previous blog on this site, Nicolas Bertrand of the London Stock Exchange (LSE) was quoted as being hot on ETFs, but also keen on increasing investment in equities (ie buying shares in companies).

That’s little surprise, since Mr Bertrand’s prime task is to boost the fortunes of LSE-listed companies, not least the mining contingent.

Whichever direction investors choose to take (and of course many take both), they inevitably increase the likelihood that even more damage will be done to the environment in gold-rich areas as the price people are prepared to pay for gold hovers at an obscenely-high level.

And that’s not even taking account of Chinese demand for the metal which has also reached an unprecedented height.

Weitere Artikel

No comments yet.

Leave a Reply

*