Daily Gold Market Report
Gold edges higher in the aftermath of the Sintra central bank conclave
‘It remains unconventional despite its extremely long and illustrious track record.’
(USAGOLD –6/30/2022) – Gold edged higher in the aftermath of the central bank conclave in Sintra, Portugal, as markets generally dug in for more tightening and the threat of a recession. It is up $3 at $1823. Silver is down 10¢ at $20.71. ByteTree’s Charlie Erith addresses a question topmost on many gold investors’ minds. Why is gold so widely ignored in professional money circles? He comes away with a very down-to-earth answer: They do not make significant fees by promoting it like they do with stocks and bonds. In fact, he says, the incentive is to ridicule it.
“[Warren Buffett] points out that it doesn’t pay dividends or generate a return on capital,” he writes in an analysis posted on the firm’s website. “Fine. But it also doesn’t have profit warnings, rights issues, lawsuits, new competition, patent cliffs, asset write-downs, leverage, liquidity mismatches, management scandals, or fraud. It is just a blob of uncopiable metal that sits there, quietly ticking higher over long stretches of time as governments debase currencies.… Central banks and doomsters are the outliers who understand this. For the rest of the world’s investors, ownership of gold as part of a long-term savings strategy remains unconventional, despite its extremely long and illustrious track record. This has particularly been the case during eras of high inflation and political unrest, such as we face now.”
Market Data by TradingView Delayed data except FOREX
Disclaimer – Opinions expressed on the USAGOLD.com website do not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such, USAGOLD does not warrant or guarantee the accuracy, timeliness, or completeness of the information found here. The views and opinions expressed at USAGOLD are those of the authors and do not necessarily reflect the official policy or position of USAGOLD. Any content provided by our bloggers or authors is solely their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.