Experts Advise Keeping Some Gold Despite Risks, Citing Benefits as Insurance and Liquidity
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Gold has rallied recently but could still struggle as the Fed maintains restrictive policies. However, panelists agree it remains an important asset to hold.
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BIS's Zöllner says investors should hold 3-6% gold as "insurance" against market uncertainty and tail risks.
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Gold provides liquidity when other assets become illiquid, as seen during the pandemic.
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Rising delinquencies in high-yield credit markets pose economic risks that warrant some gold holdings.
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Periods of volatility will likely create a floor for gold despite downward pressures from hawkish central banks.