Why investors should consider bringing bullion into their portfolio
In our final article in the GOLD series sponsored by Intl FCStone, we discuss why gold is a safe haven asset. Bullion will always maintain value due to its limited supply and intrinsic value.
The “golden” ecosytem
A safe haven asset, bullion will always maintain value due to its limited supply and intrinsic value. A hedge during periods of inflation, bullion reduces the risk in an investment portfolio and is a great asset for wealth preservation, sustainability and transfer across markets and cultures.
As it stands, the demand for investment gold like bullion keeps growing, driven by rapidly evolving Asian economies, persistent Central Bank buying and the growing HNW individuals segment.
As the HNW Individuals segment grows in economies like India and China, the demand for gold is expected to rise substantially, due to a multitude of factors. This includes, but is not limited to, changing investor motivation - buying gold to profit from potentially rising prices whilst protecting portfolios from market risk; and to ultimately preserve wealth during times of (now often seen) financial, economic, or political stress.
Supporting the transition to gold are the currently overheated mainstream capital markets and increasing investor interest to remove their assets from the financial system. With the development in Asian gold market infrastructure, this transition has never been so simple.
And physical bullion, which is historically proven to be one of the safest and most stable stores of value available to investors, fits in perfectly with that changing dynamic.
More from Martin Huxley, StoneX