Gold outlook: History favours tangible assets in the market

Gold outlook: History favours tangible assets in the market

Shan Saeed, Global Chief Economist for Juwai IQI



By Abdul Basit

Sophisticated and smart investors who fathom history and economics have always taken the position in real estate and gold, said Shan Saeed, Global Chief Economist for Juwai IQI.

Gold has taken a major position and remains in the asset portfolio of many investors in 2020. gold has appreciated 17.18% YTD and will outperform other precious metals in 2020.

"Gold will be trading between $2,200 and $2,500/ oz next year taking into account many exogenous variables like central bank buying, QE4, stimulus and negative interest rates, US election, topsy-turvy market performance and struggling Europe,“ Shan Saeed told The UAE News.

Gold is the only asset class with zero counterparty risk. The current bull market in gold has commenced, which is the third time in the yellow metal history. If we check the history and can get guidance from there.

This is the third bull run in the gold market. The first bull-run started from 1971 to 1980, and prices increased by 2,328% from $35 to $850/oz. Second bull-run started in 2001 to 2011, and prices increased by 648% from $257 to $1,923/oz. "Now we are in the third bull-run which started in 2015 to-date and