World Gold Council Asserts Gold Is Not a Volatile Asset

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There is a commonly-held misconception that since the credit crisis' eruption in August 2007, gold has become a volatile asset. Its volatility certainly has increased since then, but gold has remained less volatile than other major asset classes such as the rest of the precious metals sector, oil, the GSCI commodity index and equity markets...

Gold's investment and supply-demand characteristics are a vital part of the tapestry that leads to gold having enjoyed consistently lower levels of volatility over the past twenty years than, for example, silver, oil and other major equity indices.

There is a commonly-held misconception that since the credit crisis' eruption in August 2007, gold has become a volatile asset. Its volatility certainly has increased since then, but gold has remained less volatile than other major asset classes such as the rest of the precious metals sector, oil, the GSCI commodity index and equity markets...

The corrections during gold's recent strong bull run have resulted in pockets of increased price volatility, but as the Council points out, they pale in comparison to that experienced during the 1979 - 1980 spike.

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