Panning for small nuggets in Africa could pay off for gold bugs
With the precious metal defying gravity, investors will be wondering how to get on board
These are strange times for investors with an interest in the gold market. Look no further than the new record high in the metal this month. It comes during a time of dollar strength, a phase when gold might be expected to weaken. Analysts say central bank buying — chiefly by China — is the main driving force behind the rise in gold’s fortunes.
There are reasons to fear the bubble-like risks of dedollarisation in China, if that is what’s happening. While gold’s status as a safe-haven investment is supported by geopolitics, it’s not supported by investors generally. According to World Gold Council data, there was an outflow of $5.7bn from global gold exchange traded funds in February...
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