The looming trade war has driven investors into valuable metals, with the rise in global debt.
Gold prices have risen by more than 12% year-on-year, continuing to hit record highs.
Global uncertainty is one of the reasons why investors are driving towards precious metals, according to Simon Popple, managing director of Brookville Capital.
“I think we lived in a world that is probably far more certain than today,” Popple told Euroneus.
He specifically pointed to tariffs imposed by US President Donald Trump. Investors are also nervous about retaliation measures from affected trading partners.
During periods of uncertainty, gold is a safe home asset in the sense that even if the currency is a tank, its value decreases in volatility.
Gold prices can fluctuate in the short term, but metals have historically had strong purchasing power.
“I don't think there's a complete hedge against inflation,” Popple explained.
Check out the full interview above.
