With the current virus spread and the potential for even lower interest rates, investors should consider investing in precious metals. Article originally published at Master Investor Magazine March 2020 Issue 60 p.36-43.
At this point, with equity valuations looking stretched, interest rates at record lows, economic growth declining and inflation about to make an entrance, there’s an investment worth considering − precious metals.
Gold and silver have traditionally worked well in situations of high market volatility, currency debasements, financial crisis, epidemics and other moments of high stress. But, that’s not all. With interest rates so low around the world, the opportunity cost of holding gold and silver is low to non-existent, as investors aren’t losing much at option out of bonds.
Gold has been rising fast this year, mainly due to the spread of covid-19, the new corona virus found in Wuhan. While the effects from the epidemics may be just transitory, the case to invest in gold and other precious metals is very strong, because of the late-cycle phase of the global economy and the ultra-low interest rates.
This month I review 14 different ETFs that allow investors to get a balanced exposure to precious metals. Check my full article at the Master Investor Magazine.