Gold a good hedge against economic risks

clock

Financial advisers should consider protecting their clients' portfolios from increasing economic uncertainty by diversifying into gold, according to Stephen Flood, director of Gold Investments.

He says a 10%-15% allocation to gold or other precious metals can help hedge against the risk of falling equity and property values. Flood says: “Gold is a good hedging asset class as it is negatively correlated to other, more traditional assets. European investors are currently too concentrated on equities, property and bonds and more diversification is needed in this uncertain economic environment.” Gold Investments is currently targeting the IFA channel in the UK to spread knowledge and use of gold, along with other precious metals, among investors. The company is offering IFA clients...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Targeted at sustainable, forward-thinking finance professionals

Professional Adviser
clock 10 May 2024 • 1 min read
Defaqto: 'No appropriate and compliant way to compare MPS portfolios'

Defaqto: 'No appropriate and compliant way to compare MPS portfolios'

Tech firm to debut a performance comparator tracking solutions’ data

Hope Coumbe
clock 09 May 2024 • 1 min read
Assessing investment decisions made in the heat of the moment

Assessing investment decisions made in the heat of the moment

'Investors were panicking, thinking no one would ever go outside again'

Chris Justham
clock 08 May 2024 • 2 min read