Al Arabiya Financial Expert: This is the optimal role of gold within investment portfolios

Alkhabeer Financial Company founder Ammar Shata confirmed in an interview with “Al Arabiya” that gold is traditionally the best way to protect yourself from turbulence, as a safe haven against market fluctuations.

He added that hedging through gold should not exceed 5% to 8% of the investment portfolio and silver should not exceed 5%, explaining that gold is not the best hedge against inflation, but it is better at covering up and warning against political turmoil.

He believed that silver could benefit from investing in it to confront turbulence in monetary policyOr uncertainty about the next steps to tackle inflation, expecting an ounce of silver to hit $ 30.

Levels of inflation in around the world have been a factor that has discouraged the rise in gold prices in 2021, especially with the inflow of money to the stock markets due to increases record, especially in the technology sector.

But inflation is a double-edged sword for the yellow metal: Investors tend to hedge against the continued rise in inflation and expectations of falling money market earnings, paving the way for increased demand for gold and consequently to the increase in prices.

This is supported by the resurgence in demand for both gold bars in China that in India after the collapse of last year.

Analysts’ expectations on gold prices for the new year are not bright, as AMB AMRO predicted a 16% drop in gold prices in 2022, while Deutsche Gold bank Going further, he expected gold prices to drop to $ 1,500 an ounce in the new year, and then drop to $ 1,300 in 2023.

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