The continuing fall in interest rates has become cialis professional a driving force behind rising gold demand, says, Jordan Eliseo, ABC Bullion Chief Economist.

“Gold is proving to be a durable investment at a time when the cash rate is at an all-time low, more than 5% lower than what it was pre-GFC.

“Back in 2007, $200,000 in a term deposit would be earning close to $16,000 per annum in interest.

Now they’ll be lucky http://viagra24onlinepharmacy.com/ to get $6,000 so investors are looking for alternatives in this difficult environment.”

“Gold is proving to be the ultimate durable investment even when the market is volatile or uncertain.”

Eliseo says that periods of low viagra professional interest rates tend to be the best environment for gold.

”Long run data highlights that the average return on physical gold is over 20% per annum in years where real interest rates are below 2%, like they are today. So low interest rate environments like the one Australia is experiencing are typically the sweet spot for gold.”

Eliseo said investor concern that gold doesn’t pay a yield is unfounded.

“The capital appreciation, and the long run inflation protection makes up for the lack of income, with gold rising by over 8% per annum since the turn of the century. Not only is that better than cash, it’s also better than property and even the Australian share market over that time period”.

Concern over the volatility of gold as an investment should not discourage investors, says Eliseo, noting the RBA’s own investment in gold: “What many investors don’t realise is that the RBA has for decades maintained a core holding in physical gold.”

“It’s not just the RBA either, with data from best online canadian pharmacy the World Gold Council highlighting the fact that in 2014, central bank gold purchases totalled nearly 500 tonnes. In the last 50 years, only once have central banks bought more gold than they did last year.”

“Central banks still see gold as an important viagra24onlinepharmacy component of their monetary reserves, and have been building their holdings since the GFC hit.”

Their behaviour makes sense in an environment of higher economic uncertainty, http://pharmacy-online-canada24d.com with Eliseo stating that “sadly, the problems of lower growth and higher debts aren’t resolved, otherwise the RBA wouldn’t be cutting rates again.”

Media Contact: Jordan Eliseo: P: +61 9078 8327
Alex McGregor. Shed Media. T: 0404 015 556

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