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Gold Losing Its Shine as Equities Gain

Even as gold prices are looking out from under the cloud, investors are not very confident to hold on to their gold or to invest more into the precious glittering metal. Equities are gathering more interest from the investors as gold prices are showing volatility. Until last year, gold was considered one of the top options for investment to yield great returns. In the last decade, the price of gold had increased as much as six times. But gold prices have been on a declining trend and it is hoped that gold has touched its bottom in April and is rallying now.

gold-to-equities

As the gold prices are declining, investors are losing confidence in the rallying abilities of this metal and shifting focus to other investment options. On top of the other choices are the equities. A stronger dollar value is giving the investors reason to opt out of gold and look towards the equity market. The gold backed ETP holdings have performed dismally in this year and has already lost around 10.8 %. United States is the largest holder of gold with more than 8000 tonnes of gold in holdings. It is no wonder that gold prices and the economy are tied closely. As the prices of gold are oscillating at what is believed to be the bottom, investors all around the world are in a daze whether to rush in and buy the gold or to invest in equities.

Some of the market experts predict that gold is yet to reach the bottom and will touch the rate of 1000$ before it starts to rally. Because of the confusion, gold is losing its sheen and luster. Without the clear tag of safe investment haven, the lure of gold that pulls the investor is diminishing and equities are gaining where gold is losing.

About Stephanie

Stephanie Rosen is a financial market analyst and a blogger. She writes about stock market and investment opportunities around the world. You can find her latest ideas on here. Just signup our news letter today and receive regular updates of Stephanie.