The gold rush again
I recently saw this video on CNA Money Mind channel https://www.channelnewsasia.com/watch/money-mind-2024-2025/going-gold-4299741 and thought I would summarize some learning points for those interested in gold investment. Photo by Zlaťáky.cz on Unsplash Gold is viewed as a safe haven asset in time of uncertainty, crisis or geopolitical risks. Demand for gold is influenced by Central bank purchases. The purchase premium of gold decreases in % with relationship to the gold bar's weight. Eg, a heavier gold bar has lower purchase premium over a lighter one. There's no GST for investment grade gold bars. Gold-backed ETF is backed by physical gold. Lower yield environment will benefit gold prices as the opportunity cost of holding gold lowers. Source: https://www.statista.com/statistics/673513/monthly-prices-for-gold-worldwide/ As seen from the chart, the last mega price spike was in year 2019 to 2020. This year we saw another mega spike. In order to circumvent any US withholding t...