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This safe haven asset surges to record highs as JSE financial stocks fall

by , 07 July 2016
This safe haven asset surges to record highs as JSE financial stocks fall
Since the result of the Brexit referendum came in last week, investors have watched millions disappear from the companies in their portfolios. This week, it's the South African financial stocks that took the brunt of the impact.

- Nedbank (JSE: NED) is 4% lower this week
- Standard Bank (JSE:SBK) fell 4%
- Barclays Africa (JSE: BGA) also took a 4% knock
- While FirstRand (JSE: FSR) fell only 2.7%

With results like these coming from our financial sector, it's no surprise that companies mining the world's most popular safe asset, gold, are steaming ahead.

Gold miners are smiling as their share prices surge

 
Most gold mining companies haven’t seen this much positive share price action since early 2015. Harmony hit a new high of R80.87 this week pushing the share price up 10%. That means the share price is up nearly 280% than it was a year ago.
 
DRD Gold gained around 92% in the last month while Anglogold Ashanti broke the R300 mark improving its performance by 5.91%.
 

But the real star of the show is the gold price

 
At around $1,370 per ounce, the price of gold hasn’t been this high since March 2014. That’s a phenomenal performance for the precious metal. Gold fundamentals are improving and the current state of global financial markets has significantly brightened the outlook for gold over the short- to medium-term.

Our colleague in the UK, Dan Denning the Editor in Chief of Capital and Conflict says, “When the gold price moves up this drastically, it’s a signal that investors and the public are losing confidence in the financial system.”
 

So should you be buying gold right now?

 

Given the current state of the international markets, the quick answer would be, “YES BUY GOLD”.
The thing is though you need to know what type of gold to add to your portfolio. Last month, working in conjunction with our US, British and Australian researchers we put together the most comprehensive ‘how to’ plan for gold investments available today.
 
We reveal everything you need to know about gold and how to take advantage of the steady and sustained rise in the price of gold over the next 10 years.



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