After reaching all-time highs in 2020, the price of gold has now hit a near standstill. However, investors should not be too discouraged by this lack of momentum. Investing News Network recently spoke with Sightline Wealth Management Senior Vice President and Investment Advisor Paul de Sousa to learn more.
According to de Sousa, gold is a generational asset and investors should not be concerned with short-term price changes. “For those who own it, (they) understand that, and it’s just simply a minor nuisance in the grand scheme of things,” he explains. “This is a long-term hold.”
While de Sousa does believe that gold’s weakness will continue, this may create an opportunity for those who are interested in amassing more gold to utilize this volatility to their advantage and buy the asset at lower prices.
“The technicals look weak so I see continued weakness and if the delta variant or a fifth variant appears, then I think the fed tapering won’t occur and, in fact, there could be some more liquidity as well,” says de Sousa. “If you don’t own it, use the weakness and have volatility be your friend here… Just continue adding if you don’t have it and hold on.”
In addition to gold, de Sousa also offered insights on safer ways to invest in bitcoin, why some investors are retiring earlier than in the past and ways to maximize returns after retirement.
On a final note, de Sousa cautions investors to not wait on opportunities and necessary money moves until it is too late. “Gold is insurance and even personal insurance and taking care of your wills, power of attorneys, estate and all that planning, you need to do that before you need it,” de Sousa explains. “You can’t do it after the fact.”
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.
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