KUALA LUMPUR: Global investors are positioning in tangible assets such as real estate, gold, silver, art and agriculture to safeguard their wealth amid turbulent financial markets.
Juwai IQI Global Chief Economist Shan Saeed said tangible asset classes are poised to outperform many other asset categories.
“Gold prices are reaching all-time highs due to geopolitical risks, a positive macroeconomic outlook and stubborn inflation.
“The commodities supercycle has reemerged in the macro equation, prompting global investors to adopt long-term positions,” he said.
According to the latest Juwai IQI market intelligence report tracking commodity price movements over the past year, copper surged by 31%, silver by 22%, gold by 18%, zinc by 17%, aluminium by 16%, West Texas Intermediate crude by 11% and Brent crude by 9%.
Coffee saw a rise of 6% while gasoline, natural gas, heating oil and wheat experienced increases of 3%, 2% and 1% respectively.
“We have now adjusted our forecast in line with market expectations, anticipating gold prices to trade between US$2,600 (RM12,197) and US$3,000 (RM14,073) per ounce by December 2024.
“Tangible assets such as real estate, gold and silver are making a comeback in asset portfolios, reminiscent of the 1970s era,” Saeed added.
He recalled that during that time, amid stagflation characterised by higher inflation and lower growth, sophisticated investors positioned themselves in gold, silver, oil, gas and real estate.
Additionally, he added that real estate has emerged as the new global currency for savvy global investors.
— BERNAMA
