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Gold: Survival of the Fittest

by Chirag Sharma
Gold: Survival of the Fittest

Gold prices resumed today, more or less the same from the beginning of March. It has gone through tremendous volatility. But it has stood the test of time in terms of holding its value even though some very short term knee-jerk reactions. 

Focusing on the LBMA Gold Price AM & PM averages, in Q1, 2020 the average volatility has been 0.01% and the price differential since the beginning of the year till 31 March has been +5%. In March, we experienced high of -5% volatility, however over the month, the gold price average volatility stands at 0% and miniscule loss of value of -0.2% overall for the month. Both March and Q1,2020 performance has been solid for the metal. 

This strongly suggests that Gold is the ultimate safe have asset in times of crisis, albeit encountering some short term negative volatility, but staying strong in the not too short longer term period. 

 

Supporting Chart for March Gold Price: 

https://www.kitco.com/LFgif//aumar20.gif

Supporting link for post: 

https://www.sharpspixley.com/articles/lawrie-williams-gold-silver-and-the-covid-19-impact-in-march_297544.html

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