♦ “I remain of the opinion that the precious metal (gold – n. ed.) can take place in the portfolio of investors in the next period as well”.
Claudiu Cazacu, consulting strategist at the brokerage house specialized in international stock exchanges XTB Romania, believes that the waves of volatility on the capital markets – put up for sale followed by purchases in line, or vice versa – can also be explained by a combination of proactive investments and reactive, beyond geopolitical factors such as the growing tensions in the Middle East.
“Diversification is always sought. There are two modes of operation, one anticipatory or proactive and one reactive, and what is interesting is how the combination of these elements ultimately generates larger waves and movements on the charts. There is this search for alternative resources; at one time gold seemed like an outdated issue”, says the analyst for ZF.
However, spot gold in the United States recently reached a historic high of over $2,400 per ounce (28.35 grams), up 16% since the beginning of the year. The asset is currently trading at $2,327, representing a 12% advance to 2024, according to MarketWatch data. By comparison, if an investor had focused on the US stock market, represented by the S&P 500 index, he would have obtained a return of 7.9% at the same time.
“The jokes were that the Boomer generation, of the, let’s say, very experienced, would not touch the new technologies, while Bitcoin and other cryptoassets would be the future (…) Gold, on the other hand, played this role (of asset of refuge – no) and I think it is well positioned on a long horizon. I remain of the opinion that the precious metal can have a place in investors’ portfolios in the coming period as well.”
Broadly speaking, investors’ portfolios tend to take on a note of caution, continues the XTB representative, especially as we approach May, which is traditionally one of the weakest of the year in terms of stock performance.
“I see that the articles related to the equity premium and the risk in the capital markets that would be too high vis-a-vis bonds are multiplying. If these developments continue, we may have an episode in which sovereign bonds and more gain a little more interest, but with the potential limited by the fact that interest rates cannot fall that strongly.”
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