The investor who observes the current context finds a highly challenging one. The war has disrupted the international trading system (and post-COVID-19 recovery) and fueled a marked appreciation of commodities, metals, oil, grains, etc. In turn, the central banks of developed countries are reluctant to significantly raise their rates in light of the current conflict. This combination of factors makes the inflation that should have been transitory no longer look so.
Faced with times like these, where inflation and uncertainty meet, gold has been a good haven of value. From our local investment account, we have the possibility of accessing companies with exposure to the precious metal, diversifying our portfolio, starting from pesos and at an attractive exchange rate.
Barrick Gold (GOLD) is the most chosen among these options. It is the largest gold mining company in the world, with operations in 15 countries, Argentina among them. Its revenue grew consistently in every quarter of 2021 and at current gold levels, this is likely to continue in 2022. GOLD shares have increased by around 22% in USD in the last year.
Having analyzed this coverage option, it is worth remembering the phrase “A river uprooted, gain of fishermen”. For the investor with courage and patiencethe market today presents opportunities not seen since the start of the pandemic, mainly in technology companies, which have seen large falls in the last year.
PPI Retail Banking Team Leader.
Source: Ambito
