{"id":66620,"date":"2025-10-09T00:02:10","date_gmt":"2025-10-09T00:02:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/66620\/"},"modified":"2025-10-09T00:02:10","modified_gmt":"2025-10-09T00:02:10","slug":"gold-price-hits-record-6900-as-investors-chase-safe-assets","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/66620\/","title":{"rendered":"Gold price hits record $6900 as investors chase safe assets"},"content":{"rendered":"

Fund manager Amova said central banks have been steady buyers of physical gold for years, typically holding it alongside foreign currency bonds as part of their reserves.<\/p>\n

Some central banks may also be diversifying away from the US dollar and other fiat currencies.<\/p>\n

The freezing of Russia\u2019s currency reserves in European banks following its full-scale invasion of Ukraine may have added urgency to that diversification.<\/p>\n

Still, quantifying how much gold central banks have been buying over the years is considered a dark art, rife with rumour and speculation, rather than an exact science.<\/p>\n

The physical gold market is opaque and over-the-counter, unlike gold futures and derivatives traded on exchanges in the US, Shanghai, and Tokyo.<\/p>\n

The rise of gold ETFs<\/p>\n

According to Amova\u2019s head of bonds and currencies Fergus McDonald, the other major shift in gold markets has been the rise of exchange-traded funds<\/a> (ETFs).<\/p>\n

\u201cETFs have become far more popular with institutional investors in recent years,\u201d McDonald said.<\/p>\n

That made it more accessible.<\/p>\n

\u201cGold is much easier to buy \u2013 you can buy it on your computer and it also reduces one of the big detractors of gold: you have to store it somewhere and someone can steal it.\u201d<\/p>\n

McDonald believed the ability to buy and sell gold with a click has helped fuel the rally, allowing investors worldwide to jump on the momentum.<\/p>\n

He added that gold has long been a store of wealth, an asset class as established as bonds, equities, or currencies.<\/p>\n

Fomo or fundamental?<\/p>\n

McDonald said gold\u2019s recent rise was also a function of rising disgruntlement and distrust of Governments and especially, their economic policies.<\/p>\n

That price action, he argued, was reflected in the rise of both gold and digital currencies.<\/p>\n

McDonald cautioned that although gold had both fundamental and short-term reasons for rising, no asset rises in price forever.<\/p>\n

\u201cMomentum is a great thing, but once momentum passes, gold may do nothing for many years or fall in value,\u201d he said.<\/p>\n

\"Investors,Investors, including a growing base of tech-savvy women under 35, view gold as a safe, long-term asset. Photo \/ Getty Images<\/p>\n

Retail investors hold steady<\/p>\n

Online gold exchange Goldie said gold remained a tangible and trusted asset that has preserved its value through history.<\/p>\n

Its performance since the 1970s, Goldie argues, spoke for itself.<\/p>\n

\u201cWhen financial markets are volatile, gold tends to outperform,\u201d the company said.<\/p>\n

Goldie saw both small and large professional investors increase their holdings of physical gold.<\/p>\n

Founder Cameron MacLachlan said he was surprised that record prices have not prompted at least some of their clients to cash out.<\/p>\n

\u201cWhat\u2019s been remarkable is that almost all \u2013 over 98% \u2013 of our investors are holding for the long term. Gold is regarded as a safe, slow and steady investment.\u201d<\/p>\n

MacLachlan believed gold and other precious metals had a place in any diversified portfolio.<\/p>\n

He also noted a shift in investor demographics.<\/p>\n

\u201cOur client base is typically under 35 and female, and both tech and financially savvy.\u201d<\/p>\n

\u2013 RNZ<\/p>\n","protected":false},"excerpt":{"rendered":"Fund manager Amova said central banks have been steady buyers of physical gold for years, typically holding it…\n","protected":false},"author":2,"featured_media":66621,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[53765,806,19092,138,9436,4241,53767,4508,321,53766,111,139,69,3333,1974,19098],"class_list":["post-66620","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-53765","tag-as","tag-assets","tag-business","tag-chase","tag-gold","tag-halley","tag-hits","tag-investors","tag-jeffrey","tag-new-zealand","tag-newzealand","tag-nz","tag-price","tag-record","tag-safe"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/66620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=66620"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/66620\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/66621"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=66620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=66620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=66620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}