SINGAPORE (Nov 3): How does one value the price of gold without a coupon or dividend, and no expected earnings or book-to-value ratios? To Juan Carlos Artigas, the World Gold Council’s director of investment research, valuing gold is “intuitive” in essence. “[Gold] equilibrium price is where demand and supply meet. Understanding the underlying drivers and interactions of gold demand and supply should therefore give investors a robust framework to determine the value of gold,” says Artigas in the autumn edition of Gold Investor, which was published by the World Gold Council in October. Central banks:Any increase in emerging markets’ share of global GDP will drive up gold demand by central banks about fivefold, says Artigas.

Source: The Edge Markets November 03, 2016 07:16 UTC