A few months ago we wrote about how the smart money is moving to safer assets.
In a time of turbulence, gold gains interest and gets a higher proportion of an investors capital allocation.
That’s because it’s a safe traditional asset which tends to hold value or increase during those turbulent periods.
You can see it in comparison to other asset classes in John Exter’s famous inverted pyramid. Where gold will typically carry the least risk of most asset classes.
Now as you likely already know… the highest rewards usually go to those who are ahead of trends.
And the mainstream is waking up…
The Mainstream Moves Towards Gold
Goldman Sachs and Bank of America have both released statements on their projections for gold in hitting all time highs by the end of 2020.
And they are not the only ones. Many investors are now getting positioned in anticipation of a similar rise.
A disconnect between the real economy and the financial economy.
As SGMC Capital Founder & CEO Massimiliano Bondurri reported to Bloomberg…
“The massive monetary and fiscal stimulus that we are experiencing. And therefore, even though the economic numbers will be appalling this year because of the virus, valuations are likely to anyways remain supported thanks to the very large amount of monetary and fiscal stimulus, the amount of liquidity which is being injected into the system. And overall, just the signals by central banks and governments that they’re always there ready to do more.””
When money is printed but value isn’t created in the economy that matches the level of printing then fundamentals stop working.
One such change can come in the form of above average inflation. Inflation is a general increase in the price of goods and fall in the purchasing power of money.
And one of the key indicators Goldman Sachs is looked at to make their projection for their anticipated gold price rise.
Which could lead to much higher YoY returns than any other asset class in the current environment.
If you, like the world most trusted financial institutions, are also thinking about purchasing or storing more gold, we would recommend that you do it with a reputable company who has the selection, stock and expertise to help optimally stock and store your portfolio with gold.
As one of the oldest dealers in the country with an unmatched reputation, we are not just a bullion dealer but a partner who looks to the long term in assisting you.
Whether online in our shop or on the phone at 020 7283 7752 your next gold purchase is not far away.