Gold Is One of the Few Asset Classes to Have Increased in Value in 2008

By Mark O’Byrne

While gold is some 15% lower than its record high above $1,000 an ounce, hit last March, it is important to state that gold is one of the few asset classes up for the year. Gold is up 7% in USD terms, over 10.5% in EUR terms and over 39% in sterling terms (see Performance tables), clearly showing its safe haven credentials.

Gold did fall in US dollar terms as the US dollar rallied strongly in recent months. But, while gold fell from a record nominal high of just over $1,000/oz, it is important to remember that it is only down some 15% after surging nearly 60% in the previous 7 months. In the seven months from the start of the credit crunch and the collapse of Bear Stearns, gold had surged by nearly 60% – from $640 in August 2007 to over $1,000 in March 2008.

Full article here: http://seekingalpha.com/article/111223-gold-topped-all-currencies-in-2008?

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