OPEC Oil Cuts: How to Protect Your Investment Portfolio
Recently, OPEC announced that it will cut 2 million barrels of oil every day from November. This led to global condemnation with the president of the United States even warning of dire consequences. The sentiment is mirrored in the investment world. Some investors are worried about the high inflation and are looking to flee the stock market for better alternative investments.
Learn how they can protect their investment portfolios better.
Are More Countries Going Bankrupt?
The cuts will lead to oil prices rising even though the world is headed toward a recession. Just this year, Sri Lanka went bankrupt and was unable to afford to import oil. With the hike, other countries can also suffer the same consequence next year. Consumers will get no respite in their energy bills.
Higher Inflation
The higher price of oil will result in soaring energy bills that will increase the costs of everyday essentials. This might lead to central banks raising interest rates in a bid to control inflation. This makes it harder for businesses to borrow, which starts affecting their growth rates and subsequently their stock prices dropping.
How to Diversify Your Investment?
One way smart investors are diversifying their portfolios is by investing in precious metals such as gold, silver, platinum, and silver. These metals offer more stability as well as have great potential for capital gains, especially when volatility is expected to keep on rising.
It is recommended that investors keep at least 50% of their portfolio in precious metals. This way, even if their investments in crypto and stocks face wild swings, their precious metals allocation will stay steady.
Buying assets like gold and storing them in your storage or at a commercial depository can help you take your financial destiny back into your own hands. The price of gold will not be negatively affected dramatically based on the actions of a single country or organizations like OPEC. Gold also has real-world demand from industries and the jewelry market. This gives it the intrinsic value that enables it to perform well during periods of economic instability.
Select a Reliable Precious Metal Exchange
Want to secure your retirement with gold and silver? Orion Metal Exchange helps Americans take their financial destiny back from the effects of the decisions of organizations such as OPEC. We help our clients with precious metals exchange storage and supply high-quality silver, gold, platinum, palladium bullions, and coins from leading mints in the world
We don’t overcharge our customers and even offer fee-free buy-back to our clients. Our in-house department also helps with the opening of a precious metals IRA account that protects the value of their funds from the wild swings of the market.
Reach out to us now to learn about our processes and services today.
