Paul de Sousa Discusses the Importance of Owning Gold on Investing News Network
As the COVID-19 pandemic raged on this past summer, gold reached an all-time high price of $2,000 USD per ounce. The price remains high heading toward the end of the year, and many investors wonder if the investment remains sound.
To uncover the answer to this question, Investing News Network recently spoke with Sightline Wealth Management Senior Vice President and Investment Advisor Paul de Sousa. He believes gold has a place in every investor’s portfolio – no matter the current price or trend.
“The role (of gold) is capital preservation and purchasing power preservation,” de Sousa explains. “Gold is limited in supply, and with the amount of money that’s being created around the world and gold’s historical use as money and as a currency, it should be a foundation of anyone’s portfolio.”
According to de Sousa, gold should account for anywhere from 5 to 10 percent of most portfolios. Investors should also stop focusing on price, volatility and macroeconomics but rather view this precious metal as a long-term holding.
“Look at it as the foundation of your portfolio, as if you’re building a house,” de Sousa says. “The bricks of gold represent the foundation and all of the financial assets rest on top of it. In the worst-case scenario, if things burn down the foundation is still there.”
In addition to explaining why it is important for investors to purchase gold, de Sousa also offered insights on how to purchase it, store it, along with general advice for investing in precious metals in the current environment.
Click here to watch the entire Investing News Network segment.