Portfolio Adviser: Why Gold Will Continue to Shine
Article by Chris Mahoney in Portfolio Adviser
With gold having risen 28% since the start of the year and less than 2% from its all-time high,naturally some investors are wondering how much upside remains. Despite such a strong run, there are plenty of reasons to remain bullish.
If we think about when this current gold rally began – on September 27, 2022 – the price appreciation equates to 109%. That is impressive by anyone’s standards, and significantly exceeds the gain of developed market equities over the same period (the MSCI World Index has returned 78% over the same period).
However, when compared to the gold rally that occurred during the stagflation of the 1970s — when gold rose 721% — or the 352% rally after President Nixon suspended the convertibility of the US dollar into gold in 1971, it’s not so remarkable.
Compared to the more recent gold rallies seen after the Dot Com Bubble and in the years following the GFC, both of which prompted the Fed to ease monetary policy, when gold gained 292% and 167% respectively, it doesn’t seem extraordinary either.
Yet the duration of those four rallies also suggests that this one could still have legs.
The current rally, which has lasted 1046 days so far, is .....