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This blog discusses The Perth Mint's bullion coins and bars, providing information about our latest designs, mintages, sales volumes and sell outs. On a broader front, we share relevant research and opinions for anyone interested in gold and silver bullion investing.

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Gold’s Role As Portfolio Insurance

Topics [ buy gold online gold market ]

IN THE NEWS

Gold has had an awful time lately but there is still a sound reason for holding at least some of the yellow metal.

If the global financial system goes terribly wrong, gold will increase in value, offsetting losses in your other investments, experts say.

In other words, it has a role to play as portfolio insurance.

In this interview, Bron Suchecki, Manager Analysis & Strategy at The Perth Mint, considers the difference between investors who are currently selling out of gold and those that are holding on.

Ultimately, it comes down to whether they bought with a speculative ‘I’m going to get rich quick’ type attitude, or whether they bought gold as insurance, he says. 

“I think what we’re seeing is the people who are selling out probably bought for the wrong reasons… Those that bought for insurance…they’re holding gold as that insurance in case things get really bad and start to unravel.”

At a recent stockbroker presentation, Bron was asked about the reasons for buying gold now.

“If you’re 100% sure that the central banks and government have got everything under control and everything is going to be great and moving forward with no problems from here on in, then absolutely, don’t hold any gold. But if you’re not exactly 100% sure …  that’s why you should hold a bit of gold.”

Download Bron Suchecki’s full interview with Bull Market Thinking.

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