Podcast: Is gold a safe investment?

The gold price rose to $1,940 per troy ounce today, which is at its highest level ever. The precious metal has been in an uptrend for months, supported by low interest rates and the uncertain economic outlook. But is it still wise to buy gold now? Ron Schouten of Aunexum Precious Metals and analyst Georgette Boele of ABN Amro were in the studio of BNR Nieuwsradio to answer questions from listeners for an hour.

Both experts judged that the momentum for gold is currently very positive. Particularly due to low or even negative interest rates, the precious metal is now an attractive alternative. As the economic outlook will not improve for the time being, Schouten expects that the Gold price will continue to rise this year. Boele also foresees a higher gold price, but expects higher volatility now that more speculators have entered the market. As a result, she says, the downside risk has also increased.

Boele and Schouten agreed that the best thing to do is to Physical Gold because it has no counterparty risk. This is in contrast to gold ETFs, where you cannot claim physical gold as an investor. Gold mines currently offer an interesting return, but according to both experts, they also come with risks. That is why, according to Boele and Schouten, physical gold in a safe is still the safest option.

Click here to listen to the full broadcast

Disclaimer: Holland Gold does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.