GoldCore Bi Annual Market Review

With the end of the second quarter it is important to take stock and review how various assets have performed so far in 2009.

As per the tables below, gold and particularly silver have continued to outperform the vast majority of equity markets in the last six months. This is the particularly the case in terms of dollars (gold up 5.8%; silver up 21%) and euro (gold up 5.15%; silver up 20.3%). Thus gold again outperformed the benchmark S&P 500 (up 1.8) even after equity markets sharp rallies in the 2nd quarter.

01-Jul-09

 

Last

 

1 Month

YTD

1 Year

5 Year

Gold $

 

     930.15

 

-4.65%

5.68%

-0.90%

136.86%

Silver

 

      13.64

 

-12.20%

20.66%

-24.43%

130.71%

Oil

 

      71.29

 

4.74%

59.84%

-49.60%

84.02%

FTSE

 

      4,310

 

-2.45%

-2.81%

-23.39%

-3.46%

Nikkei

 

      9,940

 

2.71%

12.19%

-26.17%

-16.44%

S&P 500

 

         919

 

-2.49%

1.78%

-28.45%

-18.56%

ISEQ

 

      2,695

 

-0.99%

15.02%

-46.89%

-50.69%

EUR/USD

 

     1.4052

 

-0.91%

0.55%

-10.99%

15.49%

© 2009 www.GoldCore.com

 

 

 

 


Sterling’s recent strength has  meant that gold in sterling (-5.7%) has slightly underperformed the FTSE (-2.8%). While silver has again outperformed the FTSE (silver in sterling up 7.9% while the FTSE was down 2.8%).

At the start of the year we contributed to the Reuters Precious Metals Poll and the Bloomberg Gold Survey  and we believed that gold and particularly silver would continue to outperform equity markets internationally in the medium term. This has indeed been the case.

A Euro Perspective of World Markets

 

 

 

01-Jul-09

 

Last

 

1 Month

YTD

1 Year

5 Year

Gold €

 

662.09

 

-3.90%

5.12%

11.36%

105.13%

Silver €

 

        9.71

 

-12.82%

20.04%

-15.08%

99.84%

Oil €

 

      50.71

 

5.35%

58.88%

-43.39%

59.27%

FTSE €

 

      3,686

 

-1.80%

10.41%

-28.71%

-21.45%

Nikkei €

 

           73

 

3.06%

4.60%

-9.11%

-19.07%

S&P 500 €

 

         654

 

-1.64%

1.20%

-19.62%

-29.50%

ISEQ €

 

      2,695

 

-1.00%

15.01%

-46.89%

-50.69%

EUR/USD

 

      1.405

 

-0.89%

0.57%

-10.98%

15.51%

EUR/JPY

 

      136.2

 

-0.43%

7.26%

-18.77%

3.25%

EUR/GBP

 

1.1689

 

-0.72%

-11.99%

7.42%

22.87%

© 2009 www.GoldCore.com

 

 

 

 


Nobody has a crystal ball but given the still deteriorating global macroeconomic situation, the increasing risks of a decline in the value of the dollar and the increasing risks of inflation and potentially virulent stagflation, we continue to believe that this outperformance is likely. Especially as silver at less than $14/oz today remains well below its average price in 1980 of some $20/oz and less than a third of its nominal high price in 1980 of over $50/oz (some $130/oz when adjusted for the significant inflation of the last 29 years).

Investments (including gold and silver) can fall as well as rise and the usual crystal ball gazing suspects continue to make predictions despite their dire track record in recent months and years. Those again attempting to call a top or a bottom in individual asset classes are engaged in a fool’s errand as it is absolutely impossible to do so.

A GBP Perspective of World Markets

 

 

 

01-Jul-09

 

Last

 

1 Month

YTD

1 Year

5 Year

Gold £

 

566.90

 

-4.33%

-5.66%

20.44%

162.65%

Silver £

 

8.32

 

-11.78%

7.85%

-8.04%

156.17%

Oil £

 

43.25

 

4.61%

42.03%

-39.03%

103.12%

FTSE

 

4309

 

-2.45%

-2.81%

-23.40%

-3.46%

Nikkei £

 

62

 

-2.65%

-18.97%

-1.76%

20.86%

S&P 500 £

 

560

 

2.93%

0.03%

-13.15%

-7.45%

ISEQ £

 

2292

 

-2.30%

2.07%

-42.98%

29.09%

GBP/USD

 

          1.643

 

-0.21%

12.16%

-17.62%

-9.71%

GBP/EUR

 

          1.168

 

0.63%

11.90%

-7.50%

-22.93%

GBP/JPY

 

159.10

 

0.21%

19.94%

-24.85%

-20.12%

© 2009 www.GoldCore.com

 

 

 

 

 


It remains prudent to be diversified across asset classes and geographic regions with a healthy allocation to precious metals in these very uncertain economic times. It is not a case of a simple black and white choice of gold versus equities rather both as well as allocations to cash, corporate bonds and inflation linked government bonds are necessary in a portfolio if one is to be properly diversified and prepared for the coming years.

Mark OByrne

Also on news-goldcore-com

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE