Volatile global macroeconomics acting as a hedge has led to a significant rally in gold. What do experts expect?
The recent collapse of regional banks in the US, in response to an ultra-aggressive policy by the Fed, raises fears of a systemic crisis. Seeing resurgence of panic in markets, gold corrects valueSettling at record levels, which invites investors to position themselves in this metal.
Panic on Wall Street after the collapse of a Silicon Valley bank spreads to Europe with the bankruptcy of Credit Suisse, The governments saved both the institutions and this too seemed like an isolated incident. but in the last few weeks other banks fell Domino’s like: First Republican Bank and then Western Alliance Bancorp and PacWest Bancorp.
The common reason was deep illiquidity, resulting in a Fed that has brought its reference interest rate down to 5.25% to date. In this context of general uncertainty, Gold returns to prominence in 2020 at all-time high of $2,072,
based on progress Concerns about the banking sector, which spurred the search for safe assets and the promise of great profitability in the face of a moratorium on interest rate hike, Central banks are among the big buyers, especially from emerging countries such as China and Turkey.
The uproar has deepened to the beat of experts who believe that the US monetary authority is easing, which Will announce the beginning of the end of the rate hike cycle After the next meeting (June 14). This is important for metal hoarding: it allows to gain coverage and profit in situations of international tension.
At the local level, the Survey of Market Expectations (REM) estimates that a High rate of devaluation and rise in the general level of pricesClosing out 2023 at 126%.
Gold: What can happen in 2023?
In a global economy that fails to eliminate inflation, gold does not stop rising. After hitting a low in November Price started an upward trend (+22%) in the last six months, Over the same period, the S&P500 gained 11.4%.
Maximiliano Donzelli, Head of Research at IOL InvertirOnline, confirms this IPROUP : ,Rates can remain at this level, to meet in a Federal Reserve nears highest interest rate point, which will weaken the dollar. All these factors may constitute a floor for the price of the metal.”
consider that De-dollarization executed by various central banks, At the end of 2022, created record demand, thus providing another support for the value of the metal. according to experts, We must take into account the mobility of gold in past crises,
- It hit a low of US$256 in 2001, showing a 20% increase a year later. (value over $300)
- Between November 2008 (US$708) and February 2009, it registered an increase of over 40%. (coming to U$s1,000)
Gold: How To Work 100% Digitally
An easy way to get hold of this metal is to buy ingots. through banks and deposit them in a safe deposit box. However, experts insist that Liquidity is sometimes difficult to obtain in the short term,
You can also buy gold pieces in jewelery stores. One is Liva Joyce, which launched 1, 5 and 10 gram bars. ,We created different weights starting from 1 gram so that everyone can invest if they want.“, they point iProUP from signing. They say that it is possible to buy this product from their website.
Among the most commonly used options by local investors are Argentine Certificate of Deposit (CEDEAR)which represent US stocks and indices and allow for “indirect” exposure by investing in mining firms.
The main advantage of these devices is that They can be bought with pesos in the local market and their price will vary according to the dollar counted with the liquidation (CCL)., Also it can be bought at Platforms like Invest Online or Ula.
in conversation with iProUPKarina Diaz, capital markets expert and professor at UADE, recommends Shares of Barrick Gold (GOLD) or Harmony Gold Mining Company (HMY), These firms’ prices are skyrocketing and show great potential,
Experts recall that “Dollar has given returns of 30% and 76% respectively in the last two months, Barrick Gold, the world’s second largest miner, It may increase its production due to favorable performance of some of its deposits.
Donzelli explains Harmony Gold Mining Company was the highest growing company during the fourth month of the year (+27%)Which reacts to the trigger of the commodity.
Gold: How to trade in America
Mauro Cogneta, Managing Partner at Global Focus Investments explains iProUP He For those who have an account in the US, the easiest way to establish themselves in gold is through the listed GLD Index (SPDR Gold Shares), these tools They are investment funds which are listed on the stock exchange.,
Its operation is similar to that of shares: can be bought and sold with a wheel, ,GLD is the world’s largest gold exchange-traded fund, with US$54,000 million in assets under management. “One of its main characteristics is that it has physical gold stored in vaults as its underlying asset,” Cognetta says.
gold: how to trade crypto
Cryptocurrency expert Ianaki Appezzatagia hints at this iProUP He Another way is to acquire stablecoins that have parity with gold., The price of each token reacts to a fraction of the backing pool and is related to the performance of the metal. Furthermore, the volatility of other cryptocurrencies such as bitcoin or ethereum is avoided.
According to the expert,The two biggest projects are Tether Gold (XAUT) and Pax Gold (PAXG)., with a total capitalization of over US$1,000 million. While both are listed on several exchanges, PAXG stands out against Binance and Lemon Cash“, express.
Apazztegia confirms that their difference with physical gold is that they can generate other returns for investors, beyond just the value of having them. ,You can get an additional 7% return on investing your PAXG on the Nexo platform“, exemplified.
About the opposition, he assures Are stable coins have a low level of liquidity, making it less attractive For savers seeking decentralization of tokens.