CNA Explains: Why is gold a safe haven asset?
it is as bright as daylight the most
popular Haven asset this year has been
gold demand has been on the rise for
alternatives to risky bats such as
equities and crypto gold is a steady
store of wealth unlike Fiat currencies
its Supply is finite it is universally
recognized and cannot be devalued by
over Printing and as the cost of living
Rises so does the price of Boolean gold
investment is considered immune from
inflation or the erosion of purchasing
power the yellow metal holds its shine
even in dark times when geopolitical
conflicts unfold or recessions take hold
when the economy is shaky investors
often flock to gold in past crisis gold
managed to retain its value while stocks
turn volatile experts note a major
driving force behind the recent gold
rush bul buying Buy big players such as
the central banks we all understand the
geoeconomic largely speaking economics
and interest rates but what we’re not
anticipating really and not really
building into our calculations is the
huge levels of debt now we obviously are
constantly reminded of the debt in the
United States but I’m talking about for
instance the need for the UK and the
rest of Europe to rearm urgently at the
moment and which means that they will
need to issue debt to do so there is
very little growth in Europe there is
very little growth anywhere in the world
to be perfectly honest and the only way
that they’re going to have to spend 4%
of their GDP getting their uh rearming
their countries is to actually borrow
and so I think the next major threat to
the world economy internationally is
going to be these burgeoning levels of
debt which are only going to increase
and I think that is part of what’s being
reflected in the gold price because as
this debt increases you undermine fear
currencies and you just you just
continually add to this enormously
expanding bubble which is at some point
going to come back to
roost just like anything the price of
gold is affected by supply and demand if
Supply is thin or if demand spikes
prices will rise and vice versa bullan
prices also tend to move inversely with
interest rates and that’s because the
future yield from gold is seen as more
attractive than that of bonds
now just a hint from the FED about
potentially lowering rates sometime this
year is enough to send gold
skyrocketing even at already dizzying
Heights experts are convinced that
prices could continue to push their
limits is it overpriced no I don’t think
it is is it possible it consolidates yes
I’m afraid I have to say it’s possible
that always happens um but it doesn’t
feel to me that the normal players in
the gold market around the world the
people that you normally associate with
gold price rallies such as Investment
Bank trading for instance have had this
trade it’s remarkable but uh it feels
like they’ve been left behind but I
think it’s a consistent move I do not
think there’s anything on the horizon
that is going to point to a significant
decline in gold at all uh for on the
contrary I think we can we’re staring at
a situation where gold could continually
move higher and leave many of the
investment institutions behind remember
though All That Glitters Is Not Gold no
investment is completely safe gold can
fluctuate in price and it doesn’t
generate income like dividend paying
stocks or bonds still its history as a
store of value and its performance
during tough times can make gold a
bright spot in a balanc and diversified
portfolio for CNA explains I’m Olivia
marzuki
From sticky inflation and high interest rates to bank failures and recession chatters, it has been a rough few years for investors. Many have been seeking shelter in safe haven assets. But why is gold a top choice for them? CNA’s Olivia Marzuki explains.
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15 Comments
Jamus Lim then impressed upon the House that WP’s proposal is based on studies that show that a minimum wage does not lead to an increase in unemployment, and is not based on “folksy wisdom and beliefs of labour union leaders”.
The use of the word “folksy” by Assoc Prof Lim in Parliament appears to have triggered the enmity of some people linked to NTUC.
How do you test it, weight it, cut it?
Assoc Prof Lim however stressed that there are many areas where he respect the views of union leaders, such as their empathetic representation of workers under their charge, their ability to negotiate with business owners, and their hard work in support of workers’ rights.
“My disagreement in this instance in no way diminishes my regard for unionists in these other ways, nor does it take away from my appreciation of their work in the past Jamus Lim
You can't "explain" that gold is a safe asset as it says here. That's called an extravagent claim on this planet.
You can speculate that it's an asset — if you own it free and clear and aren't worried about the interest or capital gains you're losing on the money you paid for it.
Safe?
🤣😂😅🤣
Safer than Bitcoin.
Maybe.
so nothing really change in the last 5 decades it seems.
News like these often comes out only after prices of commodities have spiked much higher. Why didn't CNA talk about Gold demands when it was trading at USD1600 to USD1800 an ounce? And started talking about it after the rally and at time high prices of gold at closing to USD2400. This is where announcements and news are made public to lure 'dumb retail investors' to buy in at high prices when currently Gold is retracing back to breakout support level at USD2100. Clever market manipulation where market makers trap retailers to buy high while instutitions dump on you guys. Learn to read charts. I have no doubt Gold will go to above USD3000 in the next few months. But again, don't follow news. News are delayed announcements.
usually when the news report about it , u are too late to buy it
Since ancient times, compared to fiat currencies, cryptos, commodities, bonds, treasuries, stocks, goods, properties, land etc, Gold will always have value over time so long as Humans trade, save and keep it for their future generations.
S'pore is such a safe haven because of the PAP govt which is ranked the most effective in the world. What a remarkable PAP!❤❤
Recently, Singapore is buying alot. Why?
Gold is a bad investment.
1. No interest or dividends earn, that yearly lost
2. Gold price dont fluctuate that much. Its dead investment
3. Gold need storage space. Thats paying rents. The more u buy the higher is the rentals
4. Buying n selling price difference
Only in war then u buy gold, else only idiot bought
isn't there something more practically useful to us humans? to me baked beans is more important than gold.
What's HARMFUL singapore had changed to a multi-nation country (multi-nation-singapore) so even with the saf soldiers AND gold also no use, it's the pap party mistakes and there's no way to u-turn back.