Then, compare your result with the price of gold over the same period. To find out how inflation is impacting your savings over time, check out this inflation calculator tool. With these benefits in mind, it makes sense why so many wealthy investors recommend holding at least some of your wealth in the metal. Gold has historically been used to preserve wealth, protect purchasing power, and hedge against runaway inflation.
They employ tools such as gold to mitigate the effects of inflation and economic crises on their wealth. Successful investors like Kevin O’Leary and Ray Dalio understand that inflation is, for better or worse, a natural part of modern markets. There’s no denying that inflation in Canada is high, and that the economic situation is uncertain. (Iron Monk Solutions, sponsored) Millionaires and their gold allocation. Likewise, Stanley Druckenmiller recommended investors hold gold as a hedge against inflation and has stated that he has a “very large” position in gold, although he has not disclosed the specifics of his allocation. Ray Dalio’s famous “All Weather Portfolio” has an 8% gold allocation. Many other HNW investors have been outspoken about their gold allocation, including Ray Dalio, Paul Tudor Jones, Kyle Bass, Stanley Druckenmiller, and many more. He has a strong preference for owning physical gold rather than investing in mining stocks. O’Leary has publicly stated on a YouTube show that he likes to keep 5% of his portfolio allocated to gold, with annual rebalancing. Take Kevin O’Leary, the famous Canadian investor and host of the hit ABC television show Shark Tank. Some of the wealthiest Canadians are leaning on gold to protect their savings and shore up their financial positions amid high inflation and economic uncertainty. Institutional investors and high-net-worth (HNW) individuals have also been net buyers of the yellow metal. (Iron Monk Solutions via, sponsored) Gold Reserves by Country (2022).īut it’s not just central banks that have an appetite for gold. Central Bank & Institutional Buying FrenzyĮarlier this year, CNBC reported that central banks across the world purchased gold at record-high numbers in 2022.
While gold can be an excellent investment, it has its own risks, so we recommend you always speak to your financial advisor before making any investment decision.įor those considering buying gold in Canada, we put together this informational guide to help you arrive at a fully informed decision.
All the while, the stock market fell and remains volatile today.Īs a hard asset, gold remains an excellent inflation hedge and often provides crucial diversification benefits to a traditional stock and bond-heavy portfolio.īasically, gold acts like an “insurance policy” against drops in the stock market and the Canadian dollar.īut, if you’re looking to buy gold in Canada, don’t make the leap without first doing your homework. Take last year, for example, when gold demand hit a decade-high and increased in value following the Russian invasion of Ukraine. The yellow metal has generally performed well under bouts of economic and geopolitical turmoil. With bank failures, geopolitical tension, and crises casting doubt on the economy, not to mention inflation eroding the value of the Canadian dollar, it’s no wonder why everyone from ordinary investors to central bankers is stockpiling gold at record rates-to the tune of 4,741 tonnes last year alone. In 2023, more Canadians than ever are looking to gold and other precious metals to protect and diversify their investment portfolios due to economic uncertainty.
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