Gold still the ‘catastrophe’ metal of choice
Yet the recent premium arising from the Middle East conflict is volatile and not a reliable driver of long-term value, say some
The prospect of regional conflict in the Middle East has given gold a boost in another example of what former AngloGold Ashanti CEO Bobby Godsell once lamented was the metal’s “catastrophe status”. When he said this, in the 1990s, AngloGold Ashanti was working hard to promote gold as adornment, but jewellery is only a shiny sliver of its appeal.
So is geopolitical tension, it would seem. The recent premium in gold arising from the Middle East conflict is a volatile one, and not a reliable driver of long-term value, says UBS. “It makes the market vulnerable to headlines,” says Joni Teves, a precious metals strategist for the Swiss bank. ..
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