George Milling-Stanley, Chief Gold Strategist, Maxwell Gold, Head of Gold Strategy and Ryan O’Carroll, Vice President, Independent Wealth Management at State Street Global Advisors discuss their Q4 Gold Market Outlook.
Gold has been a historically reliable asset that provides diversification to a portfolio, helps mitigate portfolio drawdowns, and provides potential store of value for investors over time. The benefits of risk management, capital appreciation, and wealth preservation all make gold an attractive option for investment.
When the pandemic brought drastic change to asset markets around the world, the value of gold surged, reaching $2,000 for the first time in August 2020. In fact, gold’s valuation has been steadily rising over the last several years, 18% in 2019 and nearly 25% in 2020. Since then, gold’s valuation has fallen slightly.
Milling-Stanley attributes the drop to rising yields at the longer end of the bond market, but also to an overreaction to news from the Fed that rates may rise sooner than previously announced. Milling-Stanley discusses his Q4 gold market outlook and how key factors such as inflation, rising volatility in equity markets, and jewelry demand will impact gold’s performance going forward.
State Street Global Advisors is the investment management division of State Street Corporation, and it’s the world’s fourth largest asset manager. The company creates and manages investment strategies for governments, corporations, endowments, non-profits, corporate treasurers and CFOs, asset managers, financial advisors, and other intermediaries around the world.
To learn more, register and watch State Street Global Advisor’s webcast: Gold Market Perspective – What Lies Ahead in Q4. Rescheduled to September 21, 2021 at 1PM ET. Topics include:
- Rising valuations in risk assets with potential for volatility returning
- Elevated inflation levels and global liquidity
- Recovery in jewelry demand following record weak year in 2020