Central banks, institutions, and individual investors worldwide have recently turned their attention to gold as a safeguard against economic uncertainty. In the current “stagflation” crisis, where high prices persist amidst an economic downturn, gold stands out as a reliable asset. Experts at the upcoming Seoul Money Show advocate allocating a portion of one’s portfolio to gold, emphasizing its role in protecting traditional assets like US stocks, bonds, and dollars.
At the Seoul Money Show, four alternative assets and portfolio experts underscore the importance of including gold in investment portfolios. They highlight the diminishing credibility of dollar-denominated assets due to factors like the ongoing tariff war initiated by US President Donald Trump. Diversifying investments is crucial in such uncertain times, with gold emerging as a pivotal component. Gold’s unique properties, including its ability to act as an inflation hedge and its low correlation with traditional assets, make it an attractive option for investors.
Hwang Byung-jin, from NH Investment & Securities, stresses the significance of gold in navigating macroeconomic uncertainties and tariff policies. He advocates maintaining a portion of alternative assets in portfolios, with a suggested allocation of 10%, including investments in gold, silver, and copper. Gold exchange-traded funds (ETFs) are highlighted as a convenient and cost-effective way to invest in gold, with the GLD ETF being particularly popular among Western investors.
Investment strategies for gold encompass various avenues, including physical transactions, spot accounts, gold banking on the Korea Exchange, and ETFs. Experts recommend considering ETF investments for their liquidity and ease of transactions. Domestic ETFs related to gold futures offer tax-saving advantages, especially when held in accounts like personal comprehensive asset management accounts (ISA).
In addition to gold, experts discuss investment opportunities in silver and copper. While silver is perceived as undervalued and poised for increased demand, copper, known as “Dr. Copper” for its role as a global economic indicator, shows signs of recovery from tariff risks. The experts caution against excessive investments in copper and emphasize the need to balance investment portfolios based on market conditions.
The discussion around gold, silver, and copper reflects a broader trend towards diversified investment strategies to mitigate risks and capitalize on market opportunities. As economic uncertainties persist, the role of precious metals like gold in safeguarding portfolios gains prominence. The evolving landscape of alternative assets underscores the importance of adapting investment strategies to navigate changing market dynamics effectively.
