October 4, 2023
“Joe Cavatoni: Gold-Investing in an Uncertain Market
Joe Cavatoni, the renowned Wall Street investor, believes gold is still a key asset to own but headwinds are still present. He said, “Long-term trends may be towards gold, but in the near-term it is easy to forget about the various headwinds facing the metal."
Cavatoni is especially concerned about the strength of the US dollar and the low rate of inflation. The US dollar’s strength has dampened the price of gold and made it difficult for investors to make a profit. Additionally, inflation has been significantly lower than expected, adding to the headwinds.
He believes gold is still a key asset for portfolio diversification. Cavatoni said, “It's important to remember that gold still has the same benefits it's always had. It is a hedge against currency volatility, a store of value, and a safe haven asset.” With geopolitical tensions rising, gold is becoming increasingly attractive as a safe haven.
Cavatoni said, “In my opinion, investors shouldn’t try to time golden moves, but instead stick with a long-term strategy of accumulating gold and letting their portfolio evolve. Even if the current headwinds persist, gold fundamentals remain strong and will eventually reward patient investors.” Taking a long-term approach to gold investing seems to be the best way to improve your chances of success.
The interview ended with Cavatoni’s opinion on gold miners. He said, “Gold miners are a great way to gain access to gold because the increasing price of the metal will benefit the miners.” He believes investing in gold miners might be a smart way for investors to diversify their portfolios.
Overall, it seems that Joe Cavatoni still believes gold is a key asset for portfolio diversification, although he does acknowledge the current headwinds present. By taking a long-term approach and investing in gold miners, investors may still find success in the gold market.