HOUSTON, TX / ACCESSWIRE / April 20, 2018 / Gold is a unique commodity, in a class of its own even among precious metals. It has been with humankind for millennia and has never lost its value although there have been fluctuations. Unlike other commodities, gold is not produced for consumption, nor does the price of the yellow metal behave like that of oil and wheat, for example. When economies boom, investors tend to neglect gold, but they rush back to it when the times of prosperity come to an end. This precious metal remains the safe haven they turn to at signs of impending stock market turmoil, rising inflation, or economic disturbances. All of these factors appear to be in play now, which is prompting investors to once again set their sights on gold, according to veteran entrepreneur Richard Verkley, CEO of Farpoint Metals and Mining.
Stock markets have been on a bullish streak for nine years, and a raft of political and economic developments is fueling concerns that equities will deliver lower returns in 2018. Moreover, valuations have risen so much that some analysts are advising against investing in stocks. High Tech Strategist editor Fred Hickey commented as follows in an email to CNBC: "This is one of the top three most expensive stock markets in history. On some [valuation] measurements … it is the highest. The other two comparable markets (1929 and 2000) ended in crashes. The Fed is raising rates and selling off bonds. Long-term interest rates are rising on record U.S and global debt levels. It's time to be defensive." According to Hickey, investors should bet on gold and cash. Many analysts believe that the bull market for stocks is drawing to a close, and these are typically times when interest in gold spikes. The analysis of data going back to the 1970s demonstrates that the precious metal delivers strong returns when equities perform poorly, as noted by portfolio managers at Schroders.
Gold has proved its worth as a hedge against bearish streaks in the stock market. However, investors also turn to it at the prospect of rising inflation, Richard Verkley points out. This is expected to happen in the US in 2018, which is also reviving interest in gold due to its perceived inflation-proof nature. Another important factor pushing investors to gold is concern that the US dollar and the overall global economy would be affected by new tariffs President Donald Trump has proposed for steel and aluminum imports. "Any escalation of trade wars will significantly dent the US dollar appeal, weigh negatively on US assets such as bond and equities and make gold the go-to hedge against rising US fiscal and political vulnerabilities," according to Stephen Innes of forex trading service OANDA.
Originally from Canada, Richard Verkley has become a prominent figure in Ecuador's business community as the CEO of Farpoint Metals and Mining, an environmentally friendly mining company focused on gold. He is equally well-known as a passionate philanthropist, his greatest achievement in this area being the creation of The Hearts of Gold Foundation. The seasoned entrepreneur shares his expertise and provides advice to business newcomers through video courses that focus not only on skills and strategies but also on green and sustainable practices through his latest venture Eco Metal Recovery.
Richard Verkley - Eco Metal Recovery UK - Farpoint Metals & Mining: http://richardverkleynews.com
Richard Verkley - Explores the Role of Technology in Mining: https://finance.yahoo.com/news/richard-verkley-explores-role-technology-180000458.html
Richard Verkley - CEO - Farpoint Metals and Mining - Linked In: https://www.linkedin.com/in/richard-verkley-9195a032
SOURCE: Richard Verkley