Global Investors Positioning In Tangible Assets For Wealth Protection - Economist

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, May 21 (Bernama) -- 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 told Bernama.

According to the latest Juwai IQI market intelligence report tracking commodity price movements over the past year, copper surged by 31 per cent, silver by 22 per cent, gold by 18 per cent, zinc by 17 per cent, aluminium by 16 per cent, West Texas Intermediate crude by 11 per cent, and Brent crude by nine per cent.

Coffee saw a rise of six per cent, while gasoline, natural gas, heating oil, and wheat experienced increases of three per cent, two per cent, two per cent, and one per cent, respectively.

“We have now adjusted our forecast in line with market expectations, anticipating gold prices to trade between US$2,600 and US$3,000 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," he added.

He recalled that during the 1970s, amid stagflation characterised by higher inflation and lower growth, sophisticated investors positioned themselves in gold, silver, oil, gas, and real estate.

Shan highlighted that these tangible assets serve as protection against inflation and geopolitical risks, positioning them as wealth insurance.

Additionally, he added that real estate has emerged as the new global currency for savvy global investors.

-- BERNAMA