The gold price has shown a downward trend in this 2022, which began in March, mainly due to the increases made by the Reserva Federal (Fed) to interest rates.
But, How much should invest in gold in a context of inflation living in Mexico and various countries of the world?
“Gold is a safe-haven asset, which mainly has a negative correlation with the stock market, so We portfolio traders use it to compensate for times when there is a lot of volatility in the market.like what is happening right now,” explained Jacobo Rodríguez, director of economic analysis at Black Wallstreet Capital.
“Mainly, when there are periods where there is high inflation, gold has historically performed well, since It is considered as an asset that keeps value over time. in the face of inflationary shocks, although many financial assets lose value. When there are periods of great volatility, diversification is always good and in this case gold helps a lot with that”, he added.
Until last Friday, July 22, gold was trading at a level of $1,724.64 per ouncegaining 0.34 percent with respect to its previous closing, likewise, throughout the week it maintains an advance of 0.96 percent.
The specialist pointed out that gold can present the same level of risk as any other financial asset, because its price fluctuates day by day at every moment. In addition, it is important to keep in mind that although gold can be a good investment instrument, it is necessary to have a diversified portfolio and not put 100 percent of the resources in a single asset.
A tough year for gold
Similarly, Heriberto Sandoval, investment advisor at Increase Capital, explained that “this year has been difficult for all investment assets because the falls have been widespread, and gold has not been the exception. For now, The most advisable thing for an investment portfolio is to give priority to short-term debt instruments.however, this does not mean that other assets should be discarded, it is always advisable to diversify and it is feasible to allocate a part in gold”.
Rodríguez stressed that “the main suggestion is that investments should always be seen in the long term and when we talk regarding finances, this period refers to more than three years. In that sense, gold has fallen sharply, from its highs reached at the beginning of the year. So it is good to start accumulating positions at these levels, mainly due to the situation we are experiencing”.
Crisis Protection
For his part, Alberto Tovar, an economist specialized in business and personal finance, and regional director of the North Zone of The financial He commented that “gold is a good investment to hedge once morest global crises, rather than local ones, which is when uncertainty is perceived among capitals that seek safe haven and regularly use gold for that.”
“To protect yourself from inflation, you should look for financial instruments that give you a return above inflation, such as through the banking system with coverage from the IPAB (Institute for the Protection of Bank Savings) or fixed-income investment funds” , recommended.
Also, the columnist The financial remembered that it is possible to buy gold without having to do it physically through ETFs (investment funds listed on a stock exchange).
The highest level reached by this metal in the year was on March 8, since it was placed at 2 thousand 50.76 dollars per ounce, from that level and until this Friday it registers an accumulated decline of 15.90 percent.
