Gold as an investment

Gold
ISO 4217
CodeXAU (numeric: 959)
Unit
SymbolXAU
Demographics
User(s)Investors
Reserves of SDR, forex and gold in 2006
A Good Delivery bar, the standard for trade in the major international gold markets.
Size of a 100 gram gold bar - packaged inside an assay for proof of authenticity - compared to a playing card.

Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a way of diversifying risk, especially through the use of futures contracts and derivatives. The gold market is subject to speculation and volatility as are other markets. Compared to other precious metals used for investment, gold has been the most effective safe haven across a number of countries.[1]

  1. ^ Low, R.K.Y.; Yao, Y.; Faff, R. (2015). "Diamonds vs. precious metals: What shines brightest in your investment portfolio?" (PDF). International Review of Financial Analysis. 43: 1–14. doi:10.1016/j.irfa.2015.11.002.

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