The Indian Central Bank has recently bought 200 tonnes of gold from the IMF. This has played a major role in the record gold prices lately. If other Central Banks follow suit we could see this rally continue. However, this remains a question mark. It depends on how global central banks intend to hedge against holding excessive foreign currency reserves. All in all, the private investor should do their own research and come to their own conclusions.

There is a strong argument against the private investor going “all in” with gold at such high prices. However, as a hedge against stocks and cash assets gold still looks good. Remember, before you decide to buy gold make sure that you understand why you are buying it.