Market traders have manifested their preference for gold stocks in Australia today as world markets gave way over the ominous debt default of Greece.
Gold has been safe haven in difficult times and kept its value as industrial stocks collapsed and was up approximately 0.85 percent to $1,183.30.
The domestic market is behind 2.3 percent and is close to the point where all profits in the Australian Securities Exchange or ASX during the first few months of 2015 were obliterated. The market gave up 4.7 percent since the middle of last week.
Shares in Northern Star Mining increased 5.43 percent to $2.33 while Evolution Mining posted a 3.45 percent hike or $1.20. Newcrest Mining climbed $13.18 (1.62 percent) and Ocean Gold Corporation went up 4.95 percent to $3.29.
Regrettably, shifting to gold is not always a dependable hedge against unpredictability or inflation since these assumptions missed the fact that the yellow metal is a commonly traded asset which is exposed to demand, supply and speculations.
Gold investments are regarded as opportunity costs since investors overlooked revenues that accompany traditional investments such as stocks and bonds. However, inadequate payments for gold in the long-term as well as compounding can affect investments significantly.
Nowadays, gold is worth more or less 11 multiplied by its value when the ASX was created in 1987 not to include all dividends paid during that time.