Browsing: Gold price

The gold price does seem to mirror the physical attributes of the metal, it does not lose its lustre nor does it tarnish.

It retains its shine almost perpetually. Its physical attributes mirror its attributes as an investment as well.

The case for investing in gold

The problem with most if not all investors who think about adding gold to their portfolio is that it does not directly conform to the most common valuation methodologies used for equities or bonds.

Gold patently does not generate a coupon or dividend and therefore, typical models that a based on discounted cash flows, expected earnings or book to value ratios, struggle to provide an appropriate assessment of gold’s underlying value.

This is according to the World Gold Council which has developed a framework to help investors understand the valuation of gold. The Gold Valuation Framework (GVF) posits that the price performance of …