Gold traders see better near-term opportunities elsewhere

But the metal remains an important hedge for some.

Steven G. Kelman 28 December, 2016 | 6:00PM

Last month Turkish president Recep Tayyip Erdoğan appealed to his citizens to convert their foreign currency into gold or Turkish liras. The Turkish currency has lost about one-fifth of its value so far this year.

I suspect that very few of his subjects will take his advice, given the Turkish economic environment since the attempted coup last summer, mass arrests, and the view held by many people everywhere that investment advice from politicians, unless accompanied by incentives, should be ignored.

Furthermore, cynics might expect that President Erdoğan's plea to buy gold will be followed by its confiscation should Turkey's foreign exchange reserves be depleted. Add to that the fact that gold has been a dismal performer since July, when it was trading at just over US$1,365. Its recent price was about US$1,132 for a decline of about 17%. In Canadian dollar terms, its decline is about 15%, and when measured against the euro and UK pound, 12% and 14% respectively.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Steven G. Kelman

Steven G. Kelman  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies