2. FACTORS IN SUPPORT OF UPTREND
ο A majority of gold investors views gold more as an
insurance or store of value than as a means of speculation
ο Global financial crisis
Gold tends to perform positively in times of economic uncertainties as well as in acute
crises. Unfortunately, the global financial problems are not yet sorted out. Some
credible commentators expect several more years of uncertainty and painful
deleveraging, which could end only when we are approaching the next decade.
A moderate allocation to gold will therefore in the foreseeable future remain the
imperative for many investors and could result in a positive trend of the gold price
2013 and beyond. Portfolio diversification, i.e. the spread of monies to different asset
classes and investments, should remain Imperative or safety-orientated investors over
the coming years.
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