Poll: Does the State of the Global Economy Warrant the Purchase of Gold?
In a poll conducted earlier this week in the CFA Institute Financial NewsBrief, we asked subscribers whether the state of the global economy warrants the purchase of gold or gold stocks. It looks like professional investors are split right down the middle. Out of 1,271 respondents, nearly 46% say the status of the global economy warrants the purchase of gold today, versus about 45% declining to purchase gold.
Does the state of the global economy warrant the purchase of gold or gold stocks?
While more than 9% of our readers remain undecided, governments around the world have decisively turned “bullish” on gold, with central banks in India and China snapping up gold at a rapid clip. Even the IMF reversed course by recently announcing plans to purchase $3.2 billion in gold. Official statements from these organizations suggest that they are concerned about bad debts. For many countries, these bad debts can translate into money printing. So, whatever currency you hold, ownership of gold is probably best tied to your view of the debt crisis and concomitant money printing.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.