Securities of stable value are “safe havens” for investments. These are goods that actually have an intrinsic value, such as precious metals or works of art. They’re therefore less exposed to, if not completely protected from, market volatility. This label can also be given to government bonds or currency-based funds from countries that are considered very stable. Follow me
Financial markets were sent into a tailspin on the news of Silicon Valley Bank (SVB) imploding. Despite the decisive moves by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve (Fed), market confidence has been shaken and we have witnessed a flight to safety.
Continue readingThe period of uncertainty in the financial markets makes safe-haven assets such as gold and silver attractive to investors, who have seen their prices rise. Uncertainty in the markets drives gold and silver prices higher Over the past few days, gold and silver have risen sharply, driven by the uncertainty in the stock markets caused by the banking crisis. As Giulio Visigalli writes in 'Wall Street Italia', this rise has even surprised hedge fund managers who had reduced their exposure ...
Continue readingPhysical gold remains a popular investment among investors (see also Has gold stopped protecting against inflation?). However, as many experts write, it is important to ensure that you invest in gold safely. Gold can help diversify a portfolio The precious metal is seen by many as an important part of their investment portfolio. Matthias Geissbühler, Chief Investment Officer at Raiffeisen, for example, believes that a 5 to 10 per cent allocation to gold can have a positive effect on portf ...
Continue readingMany investors have certainly wondered in recent months whether gold could continue to be an asset that could counteract the effects of inflation. Among many contributions, it is interesting to report an analysis by manager and asset manager Gottfried Urban published in the magazine 'extraETF'. The role of gold within an investment portfolio Gold is traditionally regarded as a safe haven asset. Like other safe haven assets, the precious metal would therefore act as a diversificatio ...
Continue readingThe use of a financial advisor can be helpful in making investments in gold and silver, as Eric Reed of Smart Asset suggests. Reed has, however, produced an interesting article on investing in these two metals. The intrinsic value of precious metals Gold and silver are two types of commodities. Compared to commodities, however, precious metals usually have a value that does not primarily depend on their use. Silver certainly has more industrial applications than gold, but - as Reed points out ...
Continue readingSince the beginning of the year, many investment classes are under pressure due to a variety of economic, financial and geopolitical circumstances. The crisis is affecting sectors that were booming at least until the end of 2021. One only has to think of stock indices, but even more so of the world of cryptocurrencies (the value of which seems to be in free fall). Many investors are therefore wondering how they can withstand this difficult situation, perhaps by betting on safe haven asset ...
Continue readingWith the Federal Reserve maintaining a hawkish tone, bond yields have risen, and the US Dollar remains strong. As a result, we have edged down our gold forecasts, but the risk of central banks overdoing it could send gold soaring, especially if inflation remains high while economic growth is hurt. In a base case of inflation moderating without a recession, silver should largely keep up with gold. However, an industrial downturn could hurt silver disproportionately.
Continue readingIn these days a strange phenomenon is taking place on the markets: gold is pointing towards new records of value, just while the bond market is growing again, thanks to the increase in interest rates. Giuseppe Timpone writes about it on the portal "Investireoggi.it". Central banks tighten monetary policies, but gold continues to grow Central banks are proceeding with monetary tightening. The Federal Reserve and the Bank of England have already begun the series of key interest rate hi ...
Continue readingAs long expected, the US Federal Reserve raised interest rates by 25 basis points on Wednesday. Gold immediately saw its price fall, but in the last few hours it has risen again. Fed curbs gold price only momentarily The Fed's key rate hike from 0-0.25% to 0.25-0.50% on Wednesday was somewhat expected news. In the run-up to the hike, gold had begun to slow down its rise, which had instead started rapidly after the Russian invasion of Ukraine. But after the brief shock of the rate hike, the ...
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