As gold hits new highs this season, several financial analysts have made bold predictions regarding gold and its uniqueness as a hedge against inflation. While the US stock market and Bitcoin suffered major setbacks as geopolitical tensions rose to a deadly layer, gold maintained its lead position, delivering stellar returns to its holders.
Also read: Why are central banks aggressively acquiring gold?
Analyst Says We Need to Ditch US Stocks and Embrace Gold
Gold is seeing modest price swings this week, falling nearly $50 for the first time. The shiny precious metal rose to new highs of $2,400 before falling back to $2,309 at press time.
Gold’s massive rally was triggered by the central bank’s buying spree. As the world’s major central banks hoarded gold, metal prices soared, surpassing several new highs. However, sentiment has since declined slightly, with analysts giving their opinions on why gold is better than US stocks and crypto combined.
Popular economist Peter Schiff has once again shaken the market by explaining why gold should always be the number one investment choice for investors.
Schiff spoke to X to share an update, adding that gold would remain the best alternative and hedge against inflation. He further added that the current decline in gold price should not worry investors, and they should continue to buy gold to protect themselves from losses from the impending inflationary crisis.
“Gold is down more than $50 this morning as investors turn their attention back to risky assets like tech stocks and bitcoin. But the real risk is inflation, so investors should buy gold, not sell it. Miners will be even more interesting as stock prices have historically overreacted to a decline in gold.
Why is the precious yellow metal losing value?
The main reason why gold has seen a slight decline in its price is due to the easing of geopolitical tensions in recent times. The war crisis between Israel and Iran has partly fueled the talk about gold, which has diminished somewhat as tensions between the two countries have sporadically eased.
However, central banks around the world remain bullish on gold and are moving to stockpile the asset at a rapid pace. This will help stabilize the price of gold, thereby helping its price cross new price markers soon.
Also read: US economy notes significant rise in gold, silver and copper prices
reference: watcher.guru