New figures from the World Gold Council suggest that gold is becoming less popular as an alternative asset class, which could lead more people to invest in other alternatives, such as forestry, according to AAA.
New figures from the World Gold Council suggest that gold is becoming less popular as an alternative asset class, which could lead more people to invest in other alternatives, such as forestry, according to Alternative Asset Analysis (AAA).
The demand for gold fell by 11 per cent in the third quarter, compared with the same period a year ago - largely caused by a fall in the demand for gold jewellery in China, according to a statement from TD Securities. The price of gold also fell as a result of the fall in demand, dropping to $1,704 per troy ounce. The World Gold Council also claimed that fewer investors were buying up gold coins and gold bars.
“This would suggest that investors are starting to get a bit more adventurous with their alternative investments," stated AAA’s analysis partner, Anthony Johnson. “We think that there is a growing demand for asset classes that actually provide an income for investors during the life of the investment, not just at the end of its life,” he added.
The statement from AAA came after an article was published by GreenWorld BVI, which urged investors to spread their cash out over a diverse range of asset classes, including forestry and agriculture assets, which are more likely to provide an income, as well as providing a buffer against wider economic trends.
Forestry assets, such as sustainable timberland can provide a good investment option as it protects your investment against inflation rates. AAA also claims that timber prices tend to hold up well during times of economic hardship, when more traditional asset classes tend to struggle.
“Investors increasingly want to see something tangible in return for their investments and this is what drew them to investing in gold during the recession. However, now that confidence is increasing, investors also want to see some regular income from their assets,” added Mr Johnson.