Gold, is it really a good investment?: an expert’s verdict

Faced with a world with higher inflation, gold is once again an investment alternative, where and how to buy it from Argentina

By Christian A. Buteler

30/05/2022 – 06,46hs

It is a pleasure to find you again in our weekly column “the investor”, as we will always be looking for alternatives to protect and make our money yield. Today we will talk about oro as a saving and investment option.

The week that has passed has been very good in terms of returns in the main financial markets with increases in dollars of the order of 6% in both local and international benchmark indices but beyond trying to detect if this is a rebound within a main downward trend or the end of said movement, the problems of funds continue and the main one is high inflation worldwide.

We have spoken in this space about inflation and we must continue to do so because of the damage it causes to investment. Central banks have begun to react with rate hikes, for now tenuous compared to the rise in prices registered and somewhat late but marking the end of an era of cheap money and stimulus to financial markets.

Faced with a world with higher inflation, gold is once again an investment alternative

Inflation affects the entire world, luckily not at the level we have in Argentina, fighting it will take time and effort. The loss of purchasing power of the coins will continue, the rise in rates will continue, this will have an impact on the real economy and therefore on financial assets. Here arises an asset that has been a refuge both in times of high inflation and also of armed conflicts, gold.

Faced with a world with higher inflation, gold is once again an investment alternative

Faced with a world with higher inflation, gold is once again an investment alternative

Where and how to buy gold in Argentina

Hay many ways to acquire gold in Argentina and today it becomes an interesting asset to evaluate incorporating into our investment portfolios or savings instruments. We can invest both financially and also, and here is what is interesting for those who prefer to keep their assets outside the system, in physical form without needing large sums of money. Let’s look at the options.

The financial market offers several alternatives and in very simple ways, one of them is the buy the GLD ETF which is an investment fund that replicates the price of the metal. In favor of this fund is its transparency and liquidity, but the downside is that it is an investment that is made in the United States, so it is necessary to have an investment account there.

Another way is to directly invest in mining companies through locally listed cedears and can even be purchased with pesos, for example. Barrick Gold Corp (GOLD) o Yamana Gold (AUY)as an advantage we can mention its liquidity, its accessibility and being able to be bought in Argentine pesos, within the risks it should be noted that these are companies that are listed on the stock exchange and beyond reflecting the price of gold, their business risk also comes into consideration. .

Gold is an interesting asset to evaluate incorporating into our investment portfolios or savings instruments.

Finally, an also very interesting option is the acquisition of physical gold, here the important thing is the authenticity and guarantee of what is being bought, that is why it is recommended (especially for those who are not experts in the matter) to resort to banking entities authorized by the Central Bank that also sell physical gold such as the City Bank and the Supervielle where, together with the purchase, an authentication and guarantee certificate is issued, which is always well received when one has to sell it. It can be purchased in both pesos and dollars. Banco Ciudad has been selling gold ingots for decades, it has pieces for 1, 5, 10, 50 and 100 grams. At the close of Friday, May 27, its sale price was $13,002, $62,322, $123,972, $617,173 and $1,233,675 respectively, so it can be invested from different amounts. As advantages we can highlight its security in the acquisition, marketing it throughout the world and being able to have the bullion physically as banknotes are stored, on the contrary we must emphasize that its liquidity is not the same as the dollar or a financial option.

Gold is one of the most important international assets

Gold is one of the most important international assets

Gold as an option within a diversified investment portfolio

Summarizing the investment in gold In a context of high global inflation and complicated by an armed conflict, it is an option to consider within a diversified investment portfolio. There are options for all portfolios, from financial investments abroad to those who prefer to have the physical at home or in a safe deposit box, so each one can choose the alternative that best suits their investment profile.

The information and knowledge of major investment alternatives It allows us to achieve a balance in our investments in order to balance risks and benefits in an increasingly complicated world. Until next week

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