Embracing gold’s volatility
Gold and silver prices have rallied sharply in the last few trading days, with the two precious metals back trading above USD $1700 oz (gold) and USD $21oz ( silver ). In Australian dollar terms, the news is even better, with gold for example now back above AUD $2,650oz. This price strength, which represents a volatile move to the upside, will no doubt have many bullion investors hoping we’ve now seen the end of the corrective period the two precious metals have endured in recent months. In our latest blog, we discuss the volatility of gold in some detail, looking at How gold’s volatility is driven by sharp upside price movements The importance of gold’s correlation with equity markets Gold’s lack of credit risk, and why drawdowns are never permanent Combined, these factors help explain why, from our perspective at least, gold’s volatility, rather than being something for investors to fear, can be something to embrace. This is especially true after the precious metal has gone th...