Investment Portfolios Are Broken And Gold Is the Fix – GraniteShares
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(Kitco News) - Investors are turning to gold as an alternative asset since the traditional bonds and stocks recipe is no longer working due to rising global financial market volatility and economic uncertainty, said one fund manager. In a recent telephone interview with Kitco News Will Rhind, CEO of GraniteShares creators of the low-cost gold-backed exchange-traded fund (NYSE: BAR) said that 2018 was the first year that investors with a traditional 60-40 stock/bond portfolio allocation lost money in 10 years. “Investors realize that they now need something in their portfolio that has a low correlation to bonds and stocks and that is where gold comes in.”.

The comments come after gold has fallen from last month’s eight-month high. April gold futures last traded at $1,312.20 an ounce, down 0.47% on the day. He explained that one significant difference between the current market environment and 2018, was that gold faced strong headwinds from the U.S. dollar.

He also noted that since the start of the year, gold has kept pace with equity markets, which is something that didn’t happen last year. “There is an acknowledgment that we are nearing the end of the business cycle and we can expect to see lower economic growth and that will be an important driver for gold.” “That is a function of investors looking to protect their portfolios in an environment of low growth and the potential of further disappointment in equity performance,” he said. Coin spectator is an automated news aggregation service. All copyrights belong to their respective owners. Images and text owned by copyright holders are used in reference to and promotion of those respective parties. Read in Full

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