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Sprott Seeing Renewed Interest in Gold as Stocks Keep Rallying

Institutional investors are showing renewed interest in gold due to the softer U.S. dollar, rising bond yields and concern about stretched asset valuations. Some big investors are seeking to diversify their portfolios and taking a hard look at gold as an asset class to hedge against any potential market turmoil.

Large investors are looking for complementary assets that will hedge their portfolio, in case the global market faces some turbulence, Sprott Asset Management’s CEO John Ciampaglia said in an interview. These investors don’t necessarily think that gold prices will see a significant rally, rather, they are seeking a safe haven in the physical asset. In fact, interest has been so high that some of these institutional investors have been reaching out to Sprott "for the first time in years" regarding asset diversification through gold, according to Ciampaglia.

Spot gold has rallied about twenty six percent since falling to its December 2015 low of $1,051.10 per ounce and has held steady above $1,200 per ounce since early 2017. Even though silver closely follows gold, more interest has focused on gold among precious metals as it tends to act as a better portfolio hedge than silver, according to Ciampaglia.

 

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MARKET SUMMARY

INDICES

Name Last Change
DOW 25080.50 100.00%
S&P 500 2701.58 0.76%
NASDAQ 7136.39 0.90%
TSX 15133.12 0.01%
TSX-V 619.21 0.00%

Resource Commodities

Name Last Change
Gold 1213.42 0.23%
Silver 14.19 0.49%
Copper 2.71 0.020
Platinum 832.50 0.36%
Oil 56.25 1.00%
Natural Gas 4.84 15.22%
Uranium 29.18 0.00%
Zinc 1.15 0.00%

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