According to Deloitte’s forecast, gold is once again in the focus of many investors who believe it to be a strong alternative to stocks and other assets in times of very slow or even negative growth. This is the time to consider precious metals as a way to strengthen your portfolio, and numerous experts agree that gold is among the best portfolio diversifiers, especially in the face of financial crisis. Here are five recent news stories about gold that align with experts’ opinions.
1. A 2022 study[2] reveals: precious metals serve as a safe-haven asset during economic uncertainty.
Researchers from the Department of Economics and Finance of Brunel University in London observed the role of precious metals in portfolio diversification during the Covid-19 pandemic and concluded that “gold, silver, platinum, and palladium all serve as safe-haven assets during periods of market distress across short, medium, and long investment horizons.” Looking at the median correlations, results show that gold is better able to act as a hedge for most stock markets for the short-medium investment horizons, while silver better serves as a hedge in medium horizons. What’s interesting is that both palladium and platinum also proved to be a hedge, overtaking gold and silver in terms of safe-haven and hedging properties in several instances.
2. Goldman Sachs expects gold to outperform Bitcoin
The leading global investment banking, securities, and investment management firm Goldman Sachs expects gold to outperform Bitcoin, which is described as “highly volatile,” in the long term[3]. According to Goldman’s analysis, bitcoin is similar to owning a “risk-on high-growth tech company stock,” while gold benefits from “real demand drivers” and is thus likely to be influenced by tighter financial conditions.
3. Gold outperformed the U.S. stock market in every recession since 1973.
During six out of the last seven major recessions, from 1973 onwards, the price of gold increased (the sole exception being the short recession in 1980 when the price of gold rose tremendously leading up to the recession and then lost some steam during the actual recession).
4. Past examples show: the price of gold rises at the end of the recession.
The price of gold actually started rising at the start of the previous recession, in March 2001, marking the beginning of one of the most prosperous periods for gold owners ever. Back then, the price of an ounce of gold was $263; a little over ten years later, in August 2011, gold hit the price of $1,825 per ounce, a 594 percent increase.
5. It only took one month for gold to recover after the global market crash.
In February and March 2020, global markets rapidly crashed due to mounting worries related to the Covid-19 pandemic. The price of gold fell too (albeit far less severely than those of major stock indices), but it bounced back significantly faster, recovering all losses in about a month.
HOW TO BUY GOLD AND STRENGHTEN YOUR PORTFOLIO WITH GODBEX
GODBEX is the world’s first true investment gold exchange, where users set the spot price on their own terms. The price of gold is not arbitrarily fixed to any number. Instead, the market determines the price based on supply and demand. The trading of precious metals on the platform is safe, transparent, easy, and has the lowest fees in the industry.
1. Why is GODBEX safe?
At GODBEX, you can buy, sell or trade only the highest quality gold, silver, platinum, and palladium bullion bars with a fineness over 999.5. GODBEX gives you access exclusively to first-rate products on the market produced by certified refiners who are key suppliers and producers of bullion bars and coins for some of the most important international banks, including Argor Heraeus (Switzerland), PAMP (Switzerland), Austrian Mint (Austria), and Heraeus (Germany). After purchasing a high-quality bullion bar, you have two options: to have it delivered to your address or to leave it with GODBEX for safekeeping. GODBEX ensures the secure, transparent, and certified storage of bullion bars purchased on the platform. Vaulting is operated by Loomis International, a specialist in international precious metals logistics and vaulting solutions and a market leader in the US, Switzerland, and Denmark. Safe, fast, and discreet delivery of bullion bars is done via FedEx. The delivery of bullion bars bought on the platform is insured above and beyond the standard insurance level supplied by FedEx: GODBEX offers additional insurance to cover any losses that might occur.
2. Why is GODBEX the most cost-effective?
It is absolutely free to register on GODBEX. There is a trading fee charged only when your order is executed. You will also be charged for insured and secured vaulting and fully insured international delivery of precious metals. The trading fee for silver is 1% on every transaction, for platinum 0.45%, and for palladium 0.20%. However, what makes GODBEX the most cost-effective is the trading fee on investment gold, which amounts to 0.25%, and is the lowest fee in the industry for purchasing physical gold.
3. Why is GODBEX easy to use?
GODBEX represents the simplest way to trade and store physical precious metals, requiring no prior knowledge or experience. After registering, you choose the amount of investment gold you want to buy and place a bid. Once a seller is willing to sell the required gold at that price, your bid gets filled, and you now own some gold.
Becoming a GODBEX user is intuitive and free-of-charge:
• Step 1 Register. Create your account and verify your identity.
• Step 2: Deposit. Deposit bullion bars you already own or fiat currency to start buying, selling or trading.
• Step 3: Trade. Set trading terms and start to trade.
• Step 4: Analyse. The dashboard gives you a complete overview of all your active orders, transactions and fees. If you prefer to have your trading information elsewhere, choose the option to export all the data.
• Step 5: Withdraw in one click? Vaulting or delivery – you choose what you want to do with your own, 100% allocated bullion bars. GODBEX gives you all the options.
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[1] Gold is better portfolio diversifier than bitcoin – Goldman Sachs, Reuters, Dec. 2022 (https://www.reuters.com/business/finance/gold-is-better-portfolio-diversifier-than-bitcoin-goldman-sachs-2022-12-12/)
[2] The role of precious metals in portfolio diversification during the Covid19 pandemic: A wavelet-based quantile approach, Huthaifa Alqaralleh and Alessandra Canepa, 2022.
[3] United States Economic Forecast, Daniel Bachman, Deloitte, Dec. 20
