One of the top managers of VTB Capital Investments, Vladimir Potapov, shares his opinion that in the coming year it is best to invest in gold, as the main protective asset of the market during the crisis.
Financial experts who participated in the Russia Calling Forum, organized by VTB Capital, were unanimous in their recommendations to private investors for the next 2021. They advise investing in defensive assets such as precious metals - gold and silver.
Vladimir Potapov stated that in 2020 the price of gold, as the main anti-crisis tool, rose by 25%. Private investment in the yellow metal that people usually buy for a rainy day has been on the rise since 2019. Today, all countries, including Russia, have learned the bitter lesson that only precious metals can keep savings from inflation during a crisis.
However, some financiers advise to form a crisis investment portfolio not only with protective anti-crisis assets (gold and silver), but also with such an expensive market instrument as securities of technology companies. At the same time, it is recommended to choose stocks of companies engaged in the development of digital technologies. With the spread of the coronavirus, such businesses should not lose their share of the profits.
In the current 2020, gold has positively correlated with risky instruments and kept pace with the stock market, somewhere ahead of it. Today it is difficult to name a more reliable defensive asset for hedging dynamic risks. However, the yellow metal does not provide immediate benefits. It does not pay dividends as a percentage. And tangible profits can only be expected in the long term. If the investor is not ready to wait several years, then it is better to pay attention to the securities of mining and gold producing enterprises. Most of the investment prospects in this regard are provided by the markets of Asian developing countries.
Source : Silver-mania.ru