Make no mistake; gold remains an essential safe-haven asset and an indispensable portfolio addition. Market strategist Joy Yang cites ongoing economic and political uncertainty as being supportive for gold and makes the argument that the potential for recession means gold is an invaluable asset right now.
She said, “Despite what the Federal Reserve has said, it’s still not clear to me that we’re headed for a soft landing. Cash isn’t as widely available as it used to be, and we are starting to see some cooling in the labour market,” she said. “A lot of consumers will soon face some economic challenges, so I’m not optimistic that we will see a soft landing.”
There are undercurrents of concern running through the economy with Yang citing the Federal Reserve’s ‘wait and see’ approach to policy and the potential for a major financial crisis if U.S. bond yields continue to overshadow the growing U.S. deficit. This comes as credit reference agency Moody’s, which downgraded the government’s credit rating earlier this summer, warned of a potential shutdown due to a lack of funding bills being agreed in Washington.
“There are still significant risks for the economy that investors just aren’t pricing in,” Yang warned. “Gold is an attractive asset because we are not in a state where we can relax. There is still a real need for safe-haven assets.”
Don’t fall into the camp overlooking gold’s safe-haven appeal and expose yourself to unnecessary risk. Buy gold now.
