Thursday, August 11, 2022

Is it worth investing in gold in case of high inflation levels? so say experts

gold price has shown a declining trend In this 2022, which began in March, mainly due to the increase in interest rates by the Federal Reserve (Fed).

but, How much should one invest in gold in terms of inflation Who live in Mexico and many countries of the world?

“Gold is a safe-haven asset, which primarily has a negative correlation with the stock market, therefore We portfolio traders use it to compensate for times when there is a lot of volatility in the market.As it is happening now,” explained Jacobo Rodriguez, director of economic analysis at Black Wallstreet Capital.

“Primarily, when there are times when there is high inflation, gold has historically performed well, because It is treated as an asset that holds value over time. In the face of inflationary shocks, however, many financial assets lose value. When there are periods of great volatility, diversification is always good and gold helps a lot in this case”, he added.

As of last Friday, July 22, Gold was trading at the level of $ 1,724.64 per ounceIt maintains a gain of 0.96 per cent throughout the week, with a gain of 0.34 per cent with respect to its previous close.

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The expert told Gold can present the same level of risk as any other financial assetBecause its price fluctuates from day to day every moment. Also, it is important to note that although gold can be a good investment instrument, it is necessary to have a diversified portfolio and not to put 100 percent of the resources in a single asset.

a tough year to sleep

Similarly, Heriberto Sandoval, investment advisor at Capital Growth, explained that “this year has been a tough one for all investment assets as the decline has been widespread, and gold has been no exception. For now, The best thing to do for an investment portfolio is to prefer short term debt instruments.However, this does not mean that other assets should be forsaken, it is always advisable to diversify and allocate a share in gold.

Rodriguez stressed that “the main suggestion is that investing should always be looked at over the long term and when we talk about finance, that period is more than three years. Gold has fallen sharply in that sense.” , which reached its all-time high at the beginning of the year. So it is good to start accumulating positions at these levels, mainly because of the situation we are experiencing.”

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crisis protection

For his part, Alberto Tovar, an economist specializing in business and personal finance, and regional director of the Northern Territory financial He remarked that “gold is a good investment to hedge against global crises rather than local crises, which occur when uncertainty is seen in capitals that seek safe havens and regularly use gold for this.” Huh.”

“To protect yourself from inflation, you should look for financial instruments that give you returns above inflation, such as IPAB through the banking system (Institute for the Preservation of Bank Savings) or coverage from fixed-income investment funds. with” recommended.

In addition, columnists financial Remembered that Is it possible to buy gold without doing it physically Through ETFs (investment funds listed on the stock exchange).

The metal’s highest level in the year was on March 8, as it was placed at $2,50.76 an ounce from that level and recorded an accumulated decline of 15.90 percent as of this Friday.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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