Protect your wealth in a tumultuous market – invest in gold

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Why do central banks place so much value on gold as an asset class? They love its lack of credit risk, its unrivalled liquidity and its stellar long-term performance.

After the market highs of 2020 and 2021, it’s not surprising investors are feeling a little wary – 2022 has dished up more than its fair share of global economic uncertainty, catapulting interest rates and record-high inflation.

One of the best ways to protect your wealth in a volatile market is to invest in precious metals. Diversification is the key to mitigating risk – and in tumultuous times like these, gold bullion is your secret weapon.

As an increasing number of savvy investors are setting their sights on gold, so too are the central banks. According to the World Gold Council’s recently released Gold Demand Trends report, our money masters have been snapping up bullion like wildfire, and they’re on track for their biggest gold-buying year on record. Research suggests close to 400 tonnes of gold were added to central bank reserves in Quarter Three and their gold holdings are currently worth just over US$2 trillion. 

Why do central banks place so much value on gold as an asset class? They love its lack of credit risk, its unrivalled liquidity and its stellar long-term performance. They also know it’s a brilliant diversification trump card.

Industry specialist and thought leader Tony Coleman share their sentiment.

“Gold is an exceptional store of value, it has no counterparty risk, it is extremely liquid and is a contrarian investment – it goes up when other investments go down, and that’s what you want in a portfolio,” Coleman explains. “You want to be rescued by a market that is going up when others are going down.”

He certainly knows his stuff. As managing director of New Zealand Gold Merchants, Coleman has been through the highs and lows of many economic cycles and understands where the opportunities are for those keen to grow and protect their wealth.

“We are not saying that gold and silver are the portfolio, but they are a component of a portfolio – the protection component. If the other components of the portfolio are not performing, it has been proved over and over again that gold will be protecting the investor against losses.”

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If you are serious about growing your wealth you need to look for the right opportunities, and right now gold is an excellent investment strategy.

But it’s one thing knowing bullion is a great diversification asset. It’s quite another knowing the optimal time to buy it. Buying the dip is a successful strategy but how do you pinpoint it? Coleman says buying the dip while others are panicking takes courage and knowledge, and it’s all about the timing. That’s where the support of an expert team is worth its weight in, well, gold. They know the points of both resistance and support and understand how this impacts the purchase.

Tony Coleman’s top tips for investing in gold:

  • The sooner you own some, the better off you’ll be financially
  • Buy on a dip after a major price rise
  • Don’t let FOMO rule your decision making
  • Invest up to 20% of your wealth in gold (excluding your home)
  • Buy from a professional. The product is guaranteed pure and is usually cheaper than platforms like Trade Me where added fees can significantly increase the price
  • Keep adding gold in any dips.

If you are serious about growing your wealth you need to look for the right opportunities, and right now gold is an excellent investment strategy.

Ready to protect your wealth with precious metals? Check out the following links:

Gold Price Today > Gold Spot Price NZ // Platinum & Silver Pricing

Buy Gold & Silver NZ > Silver & Gold Bullion, Coins & Bars Online

New Zealand Gold Merchant