In 2017, investors added gold to their portfolios as incomes increased, uncertainty loomed, and gold’s positive price momentum continued: US$8.2bn flowed into gold-backed ETFs and the US$ gold price rose 13.5%, its best year since 2010As 2018 begins we explore four key market trends and their implications for gold:
- synchronised global economic growth
- shrinking central bank balance sheets and rising rates
- frothy asset prices
- market transparency, efficiency, and access.
We believe that these trends will support demand and maintain gold’s relevance as a strategic asset.
Gold has delivered positive returns over the long run, outperforming key asset classes
Annual average returns over various time periods*
*As of 31 December 2017. Annual return computations are based on total return indices, except gold where the spot price is used. This arrangement more accurately reflects portfolio level performance.
Source: Bloomberg, ICE Benchmark Administration, World Gold Council