Investors should look at gold as an insurance policy for other financial assets, Joseph Wickwire, who manages $4.5 billion at Fidelity Investments, said today at the Bloomberg Portfolio Manager conference in New York.
Macroeconomic imbalances, reflationary policies and geopolitical tensions will drive prices higher in the long term, Wickwire said. Investors with risk-tolerant portfolios should hold the metal to hedge against volatility in other markets, he said.
“Gold pays off when stocks, bonds and currencies disappoint,” Wickwire said. “A little goes a long way.”
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