JOSEPH CAVATONI, THE U.S. MANAGING DIRECTOR
of the World Gold Council, keeps a packed suitcase
by his desk. While he has always traveled for work,
lately his company’s expertise has been in especially
high demand. Since January, he has attended more
than 25 conferences and traveled to meet with several
institutional investors to explain why and how to invest
in gold.
With gold prices climbing by 18.5% over the past
year—to $1,487 an ounce as of late October, outper-
forming the S&P 500’s 9% gain—it’s no surprise that
everyone’s talking about the yellow metal. Typically,
gold climbs in times of global economic uncertainty,
and most people would agree that things haven’t felt
especially stable for some time, thanks to the U.S.-
China trade war, England’s Brexit mess, an
impeachment inquiry, and geopolitical
tensions in the Middle East.
But while geopolitical fl are-
ups could help push goldprices higher in the short term, Cavatoni thinks the
commodity’s price will hold up over the long term.
As people in emerging markets, such as China
and India, move into the middle class, their interest
in gold as an investment, a potential currency,
and jewelry is rising. And according to the World
Gold Council, central banks bought a record $15.7
billion in gold in the fi rst six months of 2019 in an
attempt to allay concerns that trade tensions could
cause the value of the U.S. dollar to decline.
Ideas about the best way to invest in the metal
have also changed. During the Great Recession
and up until 2011, when gold hit a record price
of around $1,850 per ounce, investors used gold
more tactically, making shorter-term calls on
whether to buy or sell depending on what was
going on in the world. Now they’re holding it for
longer, perhaps as a hedge against a market
decline. “People have a much better understand-
ing of gold today,” Cavatoni explains. “It’s become
a strategic driver in a portfolio.”MORE INVESTMENT OPTIONS
Like with most investments, what an investor
chooses to buy depends on their needs,
says Cavatoni. Most important, though,
they have choices. “There are a lot of
different ways people can expressSPONSORED CONTENT
S1
With the price of gold expected to
continue rising, retirement-focused
investors may want to get in on the rush.