The French bank Société Générale has doubled down on its support for gold, confirming in its latest update that the precious metal continues to play an important role as a hedge against market risks.
In a briefing note from analysts, the bank confirmed that gold remains the largest commodity within its portfolio, even as it restructures its holdings in readiness for 2023. Citing a degree of volatility, the bank’s analyst said, “Systemic risks are a common feature after a round of policy tightening of this kind. Holding gold … can help stabilize portfolio volatility, in our view.”
It’s possible that volatility could spike over the coming months if the USA does enter a recessionary phase and global political tensions continue to rachet up. In the last few weeks there has been heightened discord between North and South Korea, simmering tensions between China and the USA over Taiwan and ongoing turmoil as a result of the war in Ukraine and threat of nuclear weapons being used.
These types of events can weigh heavily on markets, which are already struggling with supply chain issues and inflation headwinds.
In a highly changeable environment, gold makes for a safe, steady, and trusted store of wealth, and offsets risk. Don’t delay. Buy now.
