In August 2011, I wrote to the Financial Services Authority to seek confirmation that the London-based custodians of SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) were being regulated as custodians, despite the fact that physical bullion is not a regulated investment.
Wholesale gold bullion prices rallied to $1,718 an ounce Thursday morning in London, less than 24 hours after dipping below the $1,700 mark for the first time since the US Federal Reserve announced a third round of quantitative easing last month.
The US dollar gold price eased lower Friday morning in London, falling to $1,767 an ounce, 0.7% down on the start of the week, while stock markets also ticked lower and commodities were broadly flat. The silver price fell below $34 an ounce.
US dollar gold prices hovered near seven-month highs above $1,780 an ounce for most of Friday morning's London trading – a few dollars up on where they started the week – while stocks failed to hold early gains.
Spot market gold bullion prices dipped back below $1,615 an ounce during Monday morning's London trading, the level at which they ended last week. Silver bullion meantime failed to hold on to gains from Monday's Asian trading.
Research just out from the World Gold Council, titled “Gold as a Strategic Asset for UK Investors,” adds to the evidence that gold investing adds diversification to a portfolio like nothing else. This research argues that gold is the ultimate diversifier.
The reason gold bullion investment specifically within the alternative asset class will benefit investors is due to gold’s historically proven role as a diversifier in portfolios. Research just out from the WGC once shows what gold can add to a portfolio during good and bad times.