Economics
Gold as a hedge against bear markets
Reading Time: 2 minutes Investors are protecting their assets by hedging against a bear market. So many investors are turning to gold, to hedge against such risks. A bear market exists in a receding economy, where most stocks are declining in their values. The players of the stock market should be cautious about the falling share prices in such […]
The post Gold as a hedge against bear markets appeared first on Goldometer.

Investors are protecting their assets by hedging against a bear market. So many investors are turning to gold, to hedge against such risks.
A bear market exists in a receding economy, where most stocks are declining in their values. The players of the stock market should be cautious about the falling share prices in such a situation.
The world’s most elite investors are constantly working to protect their wealth, even if that is Bull market or Bear market: according to Sprott.com.
This practice is very necessary for the varying uncertain situations. And if the volatilities led to a bear market, it might affect the expected returns.
Portfolio Diversification in a bear market
The best possible way to protect one’s investments is to have a diversifying portfolio. It means holding various types of asset groups.
These assets should not be correlated to each other. So if one particular industry is facing some downward trend, investments in another non related industry might gain profit.
Here the price movements of both assets are in different directions. So in diversified portfolios, the prices of assets are not moving in just one direction. Thus the diversified portfolios reduce risk.
In the case of stock markets, where high chances of risk prevail, this is the best method to reduce loss. This acts as a protection for the investments.
Gold as a hedge
This metal is the best method to hedge against risks in stock markets.
“Gold has been the store of value for thousands of years. It reduces volatility. Moreover, it is considered as a safe haven asset for financial risks.” Sprott.com reports.
Ray Dalio uses gold to protect the Bridgewater Associates, the world’s largest hedge fund with $150 billion in investments. This is one of the best examples of hedging through the yellow metal in a bear market scenario.
Check out spot gold prices in your local currency.
The post Gold as a hedge against bear markets appeared first on Goldometer.

Is Japan’s Population Really Going To Fall By A Third
Is Japan’s Population Really Going To Fall By A Third
By Russell Clark, author of the Capital Flows and Asset Markets substack,
Japanese…
Culture Of Bailouts Is Destabilizing The Global Financial System
Culture Of Bailouts Is Destabilizing The Global Financial System
Authored by Ruchir Sharma, op-ed via The Financial Times,
A maximalist culture…
Banks & Big-Tech Breakdown, Credit Calm, Bitcoin & Bullion Bounce
Banks & Big-Tech Breakdown, Credit Calm, Bitcoin & Bullion Bounce
Yesterday’s early exuberance gave way to reality today as macro…
-
Energy & Critical Metals19 hours ago
Why Did Liontown Reject A $3.7-Billion Buyout Offer From Albemarle?
-
Energy & Critical Metals18 hours ago
Liontown Resources rejects US$3.7B acquisition proposal from Albemarle
-
Energy & Critical Metals18 hours ago
Price Outlook: Uranium and the Nuclear Renaissance
-
Financing News9 hours ago
Inca One Announces Convertible Debenture Financing of up to CAD$1,300,000
-
Energy & Critical Metals19 hours ago
7 Lithium Stocks Sitting in the Sweet Spot
-
Financing News11 hours ago
Equinox Gold Announces up to $200 Million in Gold Prepay and Gold Purchase and Sale Arrangements
-
Financing News19 hours ago
Both Leading Independent Proxy Advisors Recommend Sabina Gold & Silver Shareholders Vote FOR the Arrangement with B2Gold
-
Precious Metals10 hours ago
Gatos Silver Announces 2023 Annual Stockholders’ Meeting