Page 6 - Al-Rashed Newsletter July19

POTPOURRI
DID YOU KNOW?
The world's largest gold bar weighs 250
kg (551 lb).
Gold has been discovered on every
continent on earth.
Gold is edible.
Our bodies contain about 0.2 milligrams
of gold, most of it in our blood.
Earthquakes turn water into gold.
Small traces of gold have been found in
the leaves of Eucalyptus trees
Source: Thoughtco, Benzinga
GOLD IS GOLD
Gold is the only metal that is yellow or "golden." Other metals may develop a
yellowish color, but only after they have oxidized or reacted with other chemicals.
Nearly all of the gold on Earth came from meteorites that bombarded the planet over
200 million years after it formed.
Gold was discovered in California. Many people in California figured gold was there,
but it was James W. Marshall on January 24, 1848, who saw something shiny
in Sutter Creek near Coloma, California. He had discovered gold unexpectedly while
overseeing construction of a sawmill on the American River.
Gold should be an important part of a diversified investment portfolio because its
price increases in response to events that cause the value of paper investments,
such as stocks and bonds, to decline. Although the price of gold can be volatile in
the short term, it has always maintained its value over the long term
The World Gold Council estimates that all the gold ever mined totaled 187,200
metric tons in 2017 but other independent estimates vary by as much as 20%. At a
price of US$1,415 per troy ounce, reached on 12 July 2019, one ton of gold has a
value of approximately US$45.5 million.
The United States holds the number one spot with over 8,000 tonnes of gold in its
vaults – nearly as much as the next three countries combined. For six consecutive
years the Russian Central Bank has been the largest purchaser of gold, increasing
its holdings by 224 tonnes in 2017 and overtaking China to hold the fifth spot,
according to the GFMS Gold Survey.
Not every central bank is a net buyer. For the second year in a row, Venezuela has
been the largest seller of gold, with 25 tonnes sold last year to help pay off debt.
However, gross official sector sales declined by 55 percent last year, to the lowest
since 2014, indicating that central banks are happy to keep their reserves in gold,
historically viewed as a safe-haven asset
Has gold been a good investment over the long term? When evaluating the
performance of gold as an investment over the long term, it really depends on the
time period being analyzed. ... Over the past 15 years, the price of gold has
increased by 315%, roughly the same as the 30-year return
Your portfolio should be structured in a way that helps you reach your long-term
goals. Gold might have a place. However, many experts warn that you should be
wary of how much gold to include in your portfolio. One rule of thumb is to
limit gold to no more than 5 to 10 percent of your portfolio.
Here's how you can start investing in gold.
Buy physical gold. If you want to get exposure to gold, one way to do it is by
purchasing gold jewelry, coins or bullion. ...
Buy gold futures. Futures contracts are standardized contracts that trade on
organized exchanges.
Invest in gold ETFs.
Invest in gold mining companies.
Goldy Chadha
Key Accounts Manager