In his opinion, buying gold for a short time will be considered speculative. He does not consider the precious metal reliable protection against the crisis, since the cost of gold is very much dependent on the exchange rate of the American dollar. The fact is that they have an inverse relationship to each other. When the dollar depreciates, the price of gold rises and vice versa. During the crisis, investors prefer the American currency, as it is considered by many as one of the defensive assets. In the face of increased demand for the US dollar, its rate will inevitably grow.
Stuart Clark of Quilter Investors believes that gold, by contrast, will remain an important part of every investment portfolio. “If you want to stabilize investments so that the investment portfolio is not too volatile, then gold can help you with this,” the expert said. Buying gold at current levels makes sense only for the long term. Although for some investors, this is not about earnings, but about the preservation of existing capital.