Welcome to Extreme Investor Network, where we provide you with valuable insights and information to help you make informed investment decisions. Today, we’re discussing the recent surge in interest in buying gold as a safe-haven asset amidst stock market volatility and concerns about economic growth.
Gold has been outperforming stocks and the broader bond market this year, despite the Federal Reserve’s benchmark rate being above 5%. This is a surprising turn of events, as high interest rates are typically seen as bad news for gold, which offers no yield. However, with the economy showing signs of weakening and interest rates expected to decline, gold could be poised for even further gains.
According to John Davi, CEO and CIO at Astoria Portfolio Advisors, gold has passed a significant challenge in a high interest rate environment and could start to shine as economic conditions worsen. While Bitcoin has been outperforming gold so far this year, recent volatility in the cryptocurrency market has led to a 14% decline in August, compared to just a 2% decline in gold. In times of stress, gold has historically proven to be a reliable safe-haven asset.
For investors looking to gain exposure to gold, Davi recommends considering the SPDR Gold MiniShares Trust (GLDM) and the Abrdn Physical Precious Metals Basket Shares ETF (GLTR). These ETFs provide a convenient way to add gold to your portfolio and benefit from any potential upside in the precious metal.
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