Demand for gold increases as the average optimal time to invest in gold bullion for a seasonal trade goes from July 12 to October 9. Gold bullion gained an average of 3.63 per cent for the last 29 periods and outperformed the S&P 500 Index by 4.98 per cent. Demand for gold jewellery, along with bars and coins has increased in China, South East Asia, India, and other large consumers of gold as well as central banks. The demand for gold across the world is expected to increase as the Shanghai Gold Exchange and the Dubai Gold and Commodities Exchange take place.
Due to political dispute and instability in countries of Palestine, Libya, Turkey, Syria, Nigeria, and Ukraine, a “flight to safety” situation may occur, resulting in more gold purchases. The most actively traded gold ETF is noted as SPDR Gold Trust Shares (GLD), with units trading at about 1/10th of the value of gold.
Canadians with an interest in investing in gold have the option of five Exchange Traded Funds to trade in their Canadian Dollars on the Toronto Exchange, depending on what they’re looking for in terms of their investment. CJ