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Gold price up 20 percent so far this year as investors turn to precious metal to protect wealth
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An employee shows two bars of gold produced by State-owned diversified mining company PT Aneka Tambang (Antam). (kompas.com/Garry Andrew Lotulung)
G
old prices have increased significantly in recent weeks as people have turned to the yellow metal as a safe haven asset amid plummeting share prices.
On Tuesday, the price of gold produced by Aneka Tambang reached Rp 924,000 (US$56.67) per gram, a 20 percent surge year-to-date (YTD). During the past week alone, the price of the yellow metal gained 7.55 percent.
Meanwhile, the global gold price rallied by 9.9 percent in the past two weeks to US$1,643 per ounce on Monday, after it had fallen to $1,495 per ounce on March 16, according to data from monex.com. The bullion price has gained about 6 percent year-to-date.
DBS chief investment officer (CIO) Hou Wey Fook told reporters on Thursday through an online press conference that investors should be including gold in their portfolio to minimize investment risks during a difficult time like today when the coronavirus pandemic has crippled almost all economic activity.
In the report “DBS CIO Insights 2Q20, Build to Last”, published in March, Hou writes that “We also add gold as ‘risk diversifier’ to the portfolio,” emphasizing the importance of gold in one's portfolio.
“Gold returned 2 percent over the past three months and outperformed all asset classes and currencies, living up to its name as an effective portfolio hedge," Joanne Goh, a strategist at DBS, wrote in the report.
