One highly respected investment expert says that investors who want to protect their portfolio should be buying gold right now, and not be lulled into a false sense of security by the current performance of the U.S. economy and resilient jobs market.
Sprott Inc’s managing partner, Douglas Groh says that now is not the time to follow the herd. He says investors should adopt a contrarian position and acquire the yellow metal now to be protected against uncertainty and tougher conditions in the future.
“As far as I’m concerned as a safe-haven asset and portfolio diversifier, gold never loses its shine,” he said. “Unfortunately, I think investors are attracted to gold in a faddish way. They only look at it when it is fashionable and dynamic. A dynamic market will create news and then people will kind of jump on board; for better or worse and more for the worse. The better way to invest in gold is to be a contrarian.”
The current economic and geopolitical environment makes a strong case for gold investment for those who are willing to scratch the surface and go beyond headline announcements. Groh points out that a global recession is a very real possibility, and warns we are yet to see what the long-term consequences of higher interest rates will be for sectors such as commercial real estate.
What’s more, many banks are moving away from holding the U.S. dollar as their reserve currency of choice, creating additional demand for gold.
“Central banks are buying gold because they want diversification in their reserves relative to the U.S. dollar,” he added. “That is going to be an ongoing trend. It’s not just a 2023 event. Central bank demand really pushes up the floor for gold.”
One thing is clear – the stage is set for gold to shine. Don’t miss your opportunity to safeguard your portfolio. Buy now.
