Last year was a year filled with volatility. This is specifically evident with gold, which left some investors disappointed in its performance over recent months. Will investors finally see the increase in gold that they were hoping for last year in 2022? Investing News Network spoke with Sightline Wealth Management for insight.
While Sightline Wealth Management Senior Vice President and Investment Advisor Paul de Sousa does believe that gold will experience a significant rise sometime in the future, he does not think that it will occur this year due to the strength of the U.S. dollar and the amount of capital entering equity markets. Instead, he says that gold will likely remain even and continue to trade around $1,700 to $1,850 throughout 2022.
“I think the real rise will come during a massive loss of confidence, and it’ll happen very quickly. So, I don’t quite see it [in 2022],” says de Sousa. He explains that this confidence loss will likely resemble the feelings that took over investors in March 2020, when the pandemic and its corresponding lockdowns first began. However, de Sousa believes there will be a different catalyst the next time around, such as massive defaults on bonds.
Even though de Sousa’s opinion is that 2022 will likely not be the year that gold takes off, it is an ideal opportunity to get into this asset at a good price. “Just buy it now when it’s relatively calm,” de Sousa explains. “Don’t worry about it, you’re going to own this for a long time.”
In addition to gold, de Sousa also offers viewers insights on the U.S. Federal Reserve’s plans to mitigate inflation, the potential future for the U.S. dollar and why investors should not let taxes drain their wealth.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.