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Hello friends!

As you know, saving and increasing the capital is the most important task for any investor! During periods of turbulence and falling markets, when the economy is on the verge of recession and panic ensues in the market, as well as during periods of strong inflation expectations, the demand for protective assets is more evident than ever. This quiet haven may not allow you to earn a lot quickly and easily, but it will definitely help you protect your savings.

I firmly believe, that every investor's portfolio must have financial instruments that are not afraid of prolonged volatility in the market. A protective asset is like an airbag in a car: you can drive without it for a very long time, but if you suddenly need it and it's not there, then it's too late to fuss. In this sense, protecting capital from inflation is one of the urgent tasks facing investors. Having said that, gold has been considered as one of the most reliable and effective protective assets for a long time. Gold is also a good safe haven asset in the face of rising geopolitical tensions. Financial experts recommend buying gold for a long time to protect capital from the effects of the economic crisis and falling markets.

You should make purchases during a stable market situation, for a small part of your investments. After the end of the crisis, the demand for gold usually decreases, which leads to a drop in its value. Therefore, it is advisable to sell it during the crisis, when its price reaches peak values. For the profit received, it is recommended to purchase cheaper shares of reliable companies and continue in that circle. That's in a nutshell, the working strategy for preserving and increasing capital!

A reasonable question arises, how to make investments in gold? Should you buy physical gold (jewelry, gold coins and bars) or shares of gold mining companies, or maybe gold futures? One of the most reliable ways to invest is to buy an ETF for physical gold. By purchasing an ETF, you don't have to worry about taxes or the safety of jewelry. And yes, look at what the Central Banks of the developed countries of the world are doing - they are right to increase their share in gold! Where and how can I buy a gold ETF, you ask? It's very simple, there is such an opportunity on our Kazakhstan exchange market KASE, you can purchase shares of US78463V1070 SPDR Gold Trust SPDR Gold Shares (ETF), with the ticker US_GLD_*. The fund's shares are quoted in US dollars, which can also protect investments in the event of a fall in the national currency.

What is important: firstly, investments in gold help protect capital from the effects of inflation, from the consequences of economic crises and falling markets. However, it is possible to achieve a result only if the decision to purchase an asset is made not under the influence of someone else's opinion, but on the basis of an independently conducted market analysis;

Secondly, gold should be purchased at the time of its decline in value, during a period of stability in the market, even before the onset of the crisis. At the same time, it is important not to miss the moment suitable for its sale, when the price of the asset will increase as much as possible;

Thirdly, a good time to purchase gold is the period when the global Central Bank is expected to start lowering interest rates and there is a significant potential for a weakening of the USD;

Fourth, if your portfolio is formed for a long time (with an eye to decades), then there is no special reason to be careful, 15%-25% of protective assets in the total amount will be quite enough for a comfortable investment!

* - Is not an investment recommendation, remember about the risks! And of course, always remember that the most important thing is portfolio diversification!

  source: Telegram channel about stock trading and investments "Club of Traders"