{"id":124897,"date":"2022-01-29T12:59:47","date_gmt":"2022-01-29T12:59:47","guid":{"rendered":"https:\/\/fin2me.com\/?p=124897"},"modified":"2022-01-29T12:59:47","modified_gmt":"2022-01-29T12:59:47","slug":"why-investors-buy-gold-during-times-of-crisis","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/why-investors-buy-gold-during-times-of-crisis\/","title":{"rendered":"Why investors buy gold during times of crisis"},"content":{"rendered":"<p><cite>New York (CNN Business)<\/cite>Stocks have slumped this year. So has bitcoin. But gold, by comparison, has had a fairly solid start to the year. The price of the yellow metal is roughly unchanged, hovering just below $1,800 an ounce. <\/p>\n<p>Gold prices are up slightly over the past three months as well. So will the commodity&#8217;s climb pick up steam? Could it head back towards its all-time high above $2,000 during the early stages of the pandemic in the summer of 2020?<br \/>\nGold is often viewed as a good hedge against rising interest rates and inflation since it should, in theory, hold onto more of its value given that it is a tangible and scarce asset \u2014 unlike paper currencies and cryptos.<\/p>\n<ul><\/ul>\n<p>The return of market volatility this year, which has hurt meme stocks and bitcoin in particular, could lead to further gains for gold, according to some experts.<\/p>\n<ul><\/ul>\n<p>&#8220;Cryptos stole all the oxygen out of gold last year, and people go into crypto for many of the same reasons as gold,&#8221; said Robert Minter, director of ETF Investment Strategy at abrdn, noting that bitcoin bulls had argued that cryptos should be a good hedge against inflation. <\/p>\n<p>But this year is proving that&#8217;s not the case.<br \/>\n&#8220;Investors are starting to realize bitcoin is more of a risky asset. It&#8217;s less of a portfolio diversification tool and more of an energy drink,&#8221; Minter said, referring to the big highs and equally epic pullbacks for crypto prices compared to far more stable moves in gold.<br \/>\n<img decoding=\"async\" alt=\"Get ready for more wild swings. Volatile markets are back\" class=\"media__image\" src=\"\/\/cdn.cnn.com\/cnnnext\/dam\/assets\/220125071938-wall-street-new-york-stock-exchange-012422-large-169.jpg\"><br \/>\nGold is likely to remain a better bet for investors looking for protection from interest rate hikes as the Fed fights surging consumer prices.<br \/>\n&#8220;There is a lot of inflation hedging. Gold and gold miners have held up well,&#8221; said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. &#8220;They could rally due to concerns about inflation. Gold should be a part of a diversified portfolio.&#8221;<br \/>\nTop miners <span>Newmont<\/span> <span>(<span>NEM<\/span>)<\/span> and <span>Barrick Gold<\/span> <span>(<span>GOLD<\/span>)<\/span> are flat this year, moving pretty much in line with the price of gold. That&#8217;s a lot better than the 9% drop in the S&amp;P 500 and more than 20% plunge in bitcoin.<br \/>\nSome experts think gold will even pick up steam and top a new record high later this year, especially if concerns about rising interest rates globally persist and worries about what will happen to oil prices if Russia and Ukraine tensions don&#8217;t abate.<\/p>\n<ul><\/ul>\n<p>&#8220;Gold remains a safe haven and an insurance against geopolitical risks, and the risk of persistently high inflation is also positive for gold,&#8221; Andr\u00e9 Christl, CEO of Heraeus Precious Metals, said in a report.<br \/>\nChristi argues that gold could climb to about $2,120 an ounce later this year, topping its all-time high of around $2,072 from August 2020.<br \/>\nSource: <a href=\"https:\/\/edition.cnn.com\/2022\/01\/27\/investing\/gold-bitcoin-stocks-inflation\/index.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (CNN Business)Stocks have slumped this year. So has bitcoin. But gold, by comparison, has had a fairly solid start to the year. The [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":124896,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why investors buy gold during times of crisis - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/why-investors-buy-gold-during-times-of-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why investors buy gold during times of crisis - Fin2me\" \/>\n<meta property=\"og:description\" content=\"New York (CNN Business)Stocks have slumped this year. So has bitcoin. 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