Gold’s Significance As a Strategic Asset Shoots Up

SEATTLE (Scrap Monster): In its latest market update, the World Gold Council (WGC) has said that gold has increasingly become relevant as a strategic asset. The yellow metal’s demand as an investment, a reserve asset, jewellery and technology component continues to remain strong, it added.

The economic and social impacts of the global pandemic posed unprecedented challenges to investors during the previous year. Apart from compounding the existing risks, Covid-19 created new challenges. Although, the rollout of vaccines has instilled a sense of optimism among investors, the asset allocation strategies may continue to be impacted by the emerging new variants of the virus and their potential impacts.

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Many countries across the globe have reacted to the crisis situation by announcing sizeable fiscal policy measures to tackle the economic challenges. These actions, coupled with the current market conditions, are likely to boost gold’s relevance as a strategic asset. The investors are likely to be benefited from gold’s role as a diversifier. In addition, the anticipated growth in gold consumption, especially in emerging markets, would lend additional support, WGC said.