My Gold News | 21 February 2023

It's the Perfect Moment to Have Gold As A Hedge For Your Portfolio

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Economists far and wide agree gold is currently undervalued. A number of important economic ratios reinforce this opinion. It is becoming increasingly clear gold is undervalued, especially compared to other asset types. The fundamentals of this precious metal indicate we are nearing a bull market. Gold has the potential to prove especially valuable in the months and years to come as it appears the economy is headed toward a recession.

Diversify Your Portfolio with Gold

As noted above, it appears as though the global economy is at the outset of an economic downturn. This is the perfect time to shift your money out of stocks and mutual funds. Redistribute some of your savings to gold and you just might bypass the negative effects of a looming global economic recession. History shows gold and other precious metals fare quite well when the stock market dips and the economy are sluggish. Those in the know insist it is not a question of whether the next gold market will begin but when it will commence. If you do not diversify your assets by moving some of your money into gold, your hard-earned money will be subjected to the fluctuations of the increasingly volatile stock market. Gold really is the ideal hedge for just about every portfolio.

Why Gold is Currently Undervalued

A number of economic indicators show gold is undervalued. In particular, economists point to the capital cycle as one of the top reasons for gold's current undervaluation. Furthermore, economists insist a number of catalysts have the potential to contribute toward a gold bull market. As has happened in years past, money will move to gold and other precious metals during times of economic uncertainty as investors far and wide consider gold to be a safe haven of sorts that increases or at least stagnates when the stock market struggles. 


Additional Reasons to Invest in Gold

Gold is a hedge against economic downturns as well as black swan events. These are events that occur seemingly out of the blue yet in retrospect, it is clear they should have been anticipated. During such events, gold returned nearly 7 percent as opposed to about 3 percent for treasuries and a considerable stock market drop. All in all, gold has performed quite well as time has progressed. The bottom line is every investor should have at least 5 to 10 percent of his or her portfolio in gold. This way, if there is economic instability, equity volatility, negative yields, or another problem, a portion of your savings will be protected in gold, an asset that usually rises in value or holds its value during these tumultuous periods.

MyGold Makes It Easy to Invest in Gold

Are you interested in diversifying your portfolio with gold? If you have an interest in precious metals, reach out to MyGold today. You can contact us at 0800 465 369. If you prefer to reach us by email, send a message to [email protected]. You can also contact us online with our convenient contact form.