Despite nearing a “high,” gold remains a primary safe haven for investors seeking diversification from shaky currencies and global markets, said Jerry Castellini, president of CastleArk Management.
“Over the next five to ten years, the likelihood of currency debasement in the United States and Europe…is much higher than it has been at any time over the last thirty years,” Castellini told CNBC.
“That’s the risk that most investors don’t have an easy way to offset in their portfolio, and gold is the real direct way to play that.”
Golddipped early Thursday as strong economic data from the euro zone flagged investor concerns on the fate of the region’s currency.
Too Many Bubbles?
Despite its persistent safe-haven status, gold’s dramatic dips and falls this year may be one reason why investors should consider further diversification, said Ethan Anderson, portfolio manager for Rehmann Financial.
Anderson noted that while he remains supportive of gold, sectors “much less prone to having bubbles,” like non-durable consumer goods and staples, can further spread investor risk.
“Even gold is not perfect. Most of your consumer staples companies, you are still investing in people who are looking to create profits across numerous marketplaces in numerous regions—as opposed to gold, which is purely a static material,” Anderson told CNBC.
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No immediate information was available for Castellini or Anderson.