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As we have reiterated, proselytized, and cautioned many times, the asset class for refuge and/or insurance during uncertain times remains gold [precious metals] currently trading just below its peak at around $2000. Once again, the sector shows genuine promise due to serious geopolitical and social unrest almost everywhere around the planet, and in many cases, not unrelated to Covid 19.

Gold has displayed a stellar performance so far this year, climbing by 25% year to date, having breached the $2,000 psychological resistance all-time high. With major markets across the globe battling the profoundly detrimental effects of the pandemic, which has substantially halted economic activity and wiped away years of progressive gains, the future of gold is beginning to look like a shining beacon of hope and value for investors amidst a plethora of questionable valuations and deflating asset classes.

Gold remains a favorable switch from an unpalatable equities market. With pale often receding revenue growth, diminishing corporate earnings, bankruptcies, and almost zero to negative returns on bonds – the switch to precious metals is becoming an increasing alternative among investors. But investors need to know that how you buy your gold to either maximize returns or just have a flat switch.

Trading in gold is always a two-side bet, which means to be wary of the currency you buy your gold with. Nonetheless, given the US dollar remains the reserve currency of the world financial system despite its recent volatility as speculation mounts as to its correct value and its role as the world’s reserve currency is being seriously challenged. The options to gain exposure to gold are many. Buying physical Gold has additional storage and security costs to consider. ETFs offer SPDR Gold Mini Shares Trust, or the oldest and most popular SPDR Gold Trust remains in demand. While buying a Gold Mining [single entity] listed equity is our preferred but riskiest option, as you can access and learn about specific mines in different countries with their individual political risks, ore grades, prospects and dividend yields.

What we do know is that this pandemic is far from over, and in the next few months, we will feel the severe economic repercussions on economies that have been brought to a halt because of COVID 19. Having said that, there is going to be an exodus to a more resilient asset class such as gold (or possibly Bitcoin too), and that holding gold offers a safe parking space for your funds.

The pandemic is far from over with new infections erupting. Going back to life before COVID is now beginning to be harder to imagine, and a new normal with uncertain scenarios and health regulations is not good for business nor the economy. Remember, COVID 19 is also a political virus with central banks and governments wanting to contain panic and a crashing economy keeping interest rates deliberately low. That is adding the pressure on the dollar to decline – which makes it more attractive to stay put in gold.

The world’s biggest names and most renowned fund managers are now rushing towards gold, fearful of bleaker times ahead. For one famous investor and surprisingly, given his often-bearish caustic comments towards the metal, Warren Buffet just made a bet against the USD by switching a portion of Berkshire Hathaway dollar assets for this precious metal by investing over half a billion dollars in 20 million shares of Barrick Gold. Considering the uncertainty surrounding the future of the US economy, the Sage of Omaha has made a golden bet once again.

The future will cast the dice, and soon we will see. Are all bets in yet?