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Is it too late to invest in gold? – Motley Fool Australia

Gold prices are approaching record highs as investors fear inflation and currency debasement. Is it too late to invest in gold?

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With all of the drama, volatility and success that we’ve seen in the S&P/ASX 200 Index(ASX: XJO) recently, gold as an asset has slipped under the radar somewhat. Yet the gold price is today sitting at record highs and just below its all-time high. Given that gold has been used as an investment and a store of wealth for thousands of years, seeing it approach its most expensive price in history is something to pay attention to.
Yes, the yellow metal was commanding a price of over US$1,820 per ounce this week. Considering it was only asking around US$1,415 this time last year, I would say that gold is well on the way to breaching its all-time high of US$1,920 per ounce that we briefly saw back in 2011.
What is fuelling gold’s rise?
Gold is a ‘safe haven’ asset that investors usually turn to in times of economic uncertainty and risk. As gold’s supply is finite and its value intrinsic, the metal is often perceived as a good hedge against currency debasement and share market manipulation – both of which are concerning many investors currently. That’s because, in their efforts to hold up the world economy in the face of the coronavirus pandemic, central banks are printing money and issuing bonds at rates never before seen in history. Since 2008, the United States Federal Reserve has increased its balance sheet from around US$900 billion worth of assets to more than US$7 trillion. Around half of that increase has been added in just the past 3½ months.
That has some investors very worried. And precious metals are viewed by many of these investors as the best hedge against such trends.
Is it too late to invest in gold?
Many investors don’t feel the need to invest in gold – and fair enough too. Any precious metal is an unproductive asset which gives off no yield. It’s hardly the best asset to grow wealth. But I do acknowledge the appeal of a gold position in these uncertain times. So if you are this way inclined, I do think there’s still some room left for gold to move even higher. We are right now sitting in a ‘perfect storm’ for the yellow metal. Economic uncertainty abounds, we are in the midst of a global pandemic, and geopolitical tensions are at their highest level in years. In my view, all of these powerful forces are highly supportive of continued growth in gold prices.
If you don’t want to hoard bullion under your bed, an easy way to get exposure to gold is through exchange-traded funds (ETFs) like the ETFS Physical Gold ETF(ASX: GOLD). ASX gold miners are another route you can consider. Newcrest Mining Limited(ASX: NCM) is the ASX’s largest gold miner, but there are many other mid-tier companies you could also explore.
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Alliance pounces on planes deal, buying 14 Embraer jets – The Australian

A $111m deal done entirely over the internet will see Brisbane-based airline Alliance take delivery of 14 Embraer E190 jets from September.

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A $111m deal done entirely over the internet will see Brisbane-based airline Alliance take delivery of 14 Embraer E190 jets from September.
The seemingly COVID-resistant carrier raised the funds in an institutional placement and share purchase plan in June after seeing the opportunity to expand its fleet at a good price in the current pandemic.
Alliance managing director Scott McMillan said the second-hand jets from Azorra Aviation in the US were previously operated by Panama’s Copa Airlines,…

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‘Disgusting’: Woman’s photo at Woolworths checkout sparks debate – Yahoo News Australia

A Woolworths customer accused the shopper in front of her of ‘hoarding’ but people quickly came to the defence of the woman’s large purchase.

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A Woolworths customer has lashed out at another shopper, describing her as a hoarder for her enormous grocery shop in a Victorian store.
A customer wrote on the Woolworths Facebook page on Sunday they were disappointed and angry when the woman spent about $1200 at a store in Highett, in Melbournes southeast.
Her items included about 15 trays of mince. So, so selfish, the customer wrote just before the supermarket reinstated purchase limits in the state.
The post was accompanied by an image of…

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Solomon Lew decries government ‘inaction’ as retail shutdown announced – Sydney Morning Herald

Billionaire retailer Solomon Lew has hit out against new limits on retail trade in Victoria, accusing the Andrews government of causing unnecessary damage to the economy.

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“We expect significant consequences from the inaction, in particular, vast amounts of cost in federal government stimulus that is going to be required to support the Victorian community through this challenging period.”
Major retailers such as Harvey Norman, JB Hi-Fi, Officeworks and David Jones, which traded through the first and second lockdowns in the state, will now be required to shut their doors for the next six weeks due to the rule changes.
Supermarkets, liquor stores, newsagents, fuel…

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