The latter half of 2014 was rough on gold investors, to be sure, but Kitco commentator Frank Holmes offers a little bit of perspective, pointing out that though the yellow metal fell 0.8% in 2014, it still led all major world currencies apart from the dollar.
Using former Federal Reserve chairman Alan Greenspan’s words, Holmes makes the point that gold, though thought of as just a commodity, is much more. In his words:
“If gold is nothing more than a commodity, then why do most developed countries’ central banks see the need to hold the stuff?”
Gold Makes Gains on Dollar
The dollar may have edged out gold in 2014, but the trend could be reversing already this year, at least according to some analysts. “Though Gold has been flat over the past three months it has quietly gained important relative strength,” says Jordan Roy-Byrne from the DailyGold.com. “This type of relative strength within the context of an aging bear market may be another sign of a major trend change brewing under the surface.”
Read more on Kitco.com.