covid-19 pandemic Serious questions were raised on many such items which were tested to keep their store of value. Economies around the world were greatly weakened by the effects of the pandemic and almost everything to save them from collapse Central bank Printed currencies around the world without prudent hedging/backing of standard acceptable commodities like gold. Since then, currencies around the world have become extremely volatile, raising serious concerns.
In addition, due to the ongoing Russo-Ukraine war, we are also seeing supply chain disruption around the world which has given rise to a boom in commodity prices. We have experienced a disruptive increase in oil prices that has driven up the prices of other commodities. Therefore, the items were also tested.
With rising inflation concerns all over the world, we are likely to experience very challenging times in the future. An increase in interest rates is only a short-term measure for central banks to bring inflation under control. However, with a sharp rise in interest rates, we are likely to face fears of a recession around the world, which could further affect the pricing of various currencies and commodities.
According to us, assets that are decentralized by economic activity and which have global acceptance will gain more trust and confidence among people as a means to safeguard their hard earned money as a store of real value, which Possibly the least damage that can be suffered. We can go ahead and face all the economic crises. Hence, we believe that gold, other precious metals, rare spices, and collectibles such as historical documents and antique collectibles, etc., may attract more investor attention in such difficult times. cryptocurrency Can also gain some attraction due to the decentralized nature of assets.
We believe that combining traditional asset classes (Stocks/Mutual Funds/Bonds/FDs, etc.) with unconventional assets can be a prudent way to manage wealth even in the worst of crises.
Views are personal: Author – Vishesh Gandhi is the Founder (MMW Financial Services LLP)
and co-founders (Samyag Financial Services LLP and ALT Financial Services LLP)
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