NZ Herald nzherald.co.nz 28 Apr, 2021 04:30 am

Gold a better hedge than Bitcoin

Gold a better hedge than Bitcoin
In volatile & risky times, some investments offer better safety.

Tony Coleman, managing director and founder of New Zealand Gold Merchants Ltd, offers his opinion on the best way to balance an investment portfolio.New Zealand, at the moment, is heavily exposed to what seem to be two burst-able bubbles – the share market and the property market, both of which most experts agree are massively overpriced, even though recent government measures to cool the property market have been applied.The gold and silver price rose steadily from 2000 and, when the stock market crashed (as did the property markets round the world), even gold fell by about 30 per cent in US dollar terms, (though the collapse of the New Zealand dollar kept gold stable in Kiwi terms).In New Zealand dollar terms, gold went from $837 per ounce to $2310, an increase of 275 per cent with no initial dip.

Precious metals also come into their own when governments, as many are now doing (including New Zealand), print more and more money to manage their way through Covid-19 and other pressures.They were the first New Zealand company to produce local silver bars and the first to offer gold chain manufactured with local gold.

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