You may wish to read this article...
https://nomadcapitalist.com/2018/08/30/ ... -currency/'The underreported headline in all of this is that Russia and China were creating a framework to eventually clear transactions in gold, bypassing the dollar entirely. The countries aim to make more of their transactions in gold. That’s notable because both Russia and China have been accumulating gold reserves at a rapid pace compared to other countries, and the BRICS nations are gold producers.'
The idea has been around a few years that that is the end game of some countries and I tend to believe it as the US, especially under Trump, is throwing its weight about too much using the $ to punish countries they don't like via sanctions. It is a very strong weapon in global trade sanctions and even the larger powers of Europe are getting sick of it as they have been talking with Iran to find ways to avoid trading in $s.
Another reason for holding gold is the banking world in general is moving towards it as a safe asset class in times of crisis...
https://bmg-group.com/gold-zero-risk-monetary-asset/'The status of gold as a risk-free asset in Basel III will certainly have a positive effect on the price of gold, as I am sure the gold Shariah standard, which was adopted at the end of 2016, will also have. Gold was accepted for the first time as an investment in Islamic finance after the group that sets standards for the industry adopted Shariah-compliant rules for trading gold. The rules approved allow gold to be used in the $1.88 trillion Islamic finance business.
The world banking sector will take a little longer to abandon its false anti-gold indoctrination, but it will. Gold is already a de facto zero-risk asset and has been for thousands of years. As it stands, Basel III, according to LBMA and other industry bodies, makes funding gold transactions for commercial banks difficult and increases the cost of doing business. But as the reset of the international monetary system approaches, gold will be adopted even by the banking establishment, irrespective of Basel rules, as the only riskless asset, as the Chinese and Indians are already doing.'
All this however is driving me towards buying gold mines, rather than physical gold, as they provide a dividend unlike gold itself.
Anyone got any alternative views on my current strategy?