AAA thinks that the Olympics is the perfect time to review the performance of the medal metals, gold, silver and bronze, in terms of their recent performance as alternative investments.
Alternative Asset Analysis (AAA) thinks that the Olympics is the perfect time to review the performance of the medal metals, gold, silver and bronze, in terms of their recent performance as alternative investments.
Since the last Olympic Games in Beijing, the price of both gold and silver have soared as an increasing number of investors and central banks bought up the precious metals as a buffer against the uncertain economic climate. “Investing in stocks and shares looked decreasingly attractive to many in the past four years and one of the obvious alternatives is precious metals," explained Anthony Johnson, AAA’s analysis partner.
Illustrating this perfectly is the S&P GSCI Gold Spot Index, which increased by a huge 87.64 per cent between the Beijing Olympics and the London Olympics. In the meantime, Silver grew by 78.74 per cent over the same period. However, lagging a long way behind in third place is copper (from which bronze is made), growing by just 1.56 per cent according to the S&P GSCI Copper Spot for the period.
AAA claims that the reason behind gold’s popularity was the physical nature of gold. “Everyone wants something tangible in exchange for their cash when times are tough and the economy is uncertain,” claimed Mr Johnson.
However, this is not to say that there hasn't been a fair amount of volatility in the gold and silver markets over the period in question. AAA said that there are several other tangible options that are less volatile and offer risk-averse choices – such as forestry investment.
Investing in timberland in the form of sustainable plantations can provide a great mid-to long-term option for investors who want to diversify their portfolios. In addition, investing in trees through firms like Greenwood Management in Brazil, means that investors only need as little as $10,000 to buy their own slice of timberland.