By Chris Vermeulen
While gold has a clear roll to play for investors in a world dominated with global economic uncertainty, is it peaking?
The answer is "no." Global uncertainty will continue for the foreseeable future and the actions of central banks around the world, including the Federal Reserve, will continue to debase the value of the U.S. dollar, meaning gold will continue to be a strong investment for those seeking safety.
Gold serves as a high-quality, liquid asset to be used when selling other assets would cause losses. Central Banks of the world's largest long-term investment portfolios use gold to mitigate portfolio risk in this manner and have been net buyers of gold since 2010.
Investors should make use of gold's lack of correlation with other assets which makes it the best hedge against currency risk. There was a huge trend change in U.S. gold investment last May 2016. Switzerland is now a major source of U.S. gold exports. The tables turned back in May 2016 as the Swiss exported a record amount of gold to the United States. There has been a huge increase in gold flows into the Global Gold ETFs and funds. Something seriously changed in May 2016 as the Swiss exported more gold to the U.S. in one month than they have every year for several decades.