Historically, gold is perceived to be a safe haven during uncertainties and economic crises as it is considered more stable than other asset classes. It is generally an effective hedge against inflation and fluctuations in the US dollars.
Gold is an investment tool for preservation of wealth and a store of value in times of market volatility. It is an asset diversifier that could lower the overall risk in an investment portfolio.
This article will focus on different ways to invest in gold.
Recently gold hit the $1,000 barrier, but retreated again towards a level of $900. In the meantime, oil stood under pressure and hovered for a long time around the $40 level. It is clear that for a long time gold sentiment was extremely bullish, while that of ‘black gold’ was extremely bearish.
Maybe this sentiment might deliver a golden opportunity: Long oil versus short gold.
I also seek confirmation using the GOR, the Gold/Oil-Ratio.
This ratio shows how many barrels of oil can be bought with one gold bar. At the moment, the GOR is ‘trading’ around 20.