Gold is the best investment in an increasingly uncertain world, according to the boss of US investment group DoubleLine Capital.
CEO Jeffrey Gundlach is advising investors to put their money into the precious metal following the British vote to leave the European Union in June and the turbulence that has been seen across world markets following the referendum.
He said that the instability caused by the Brexit vote along with fears about the policies of central banks and the possibility of a long stagnation in the global economy were good reasons to head for the safe haven of gold.
Mr Gundlach told CNBC: "Things are shaky and feeling dangerous. I am not selling gold."
Mr Gundlach, whose Los Angeles-based company manages more than $100 billion in assets, expounded his thoughts about further instability in the markets in an interview with Barrons.
He said: “We’ve been expecting a summer of volatility all year. One of the ingredients for that cocktail was that the Federal Reserve seemed to be on a death march to raising interest rates. Now, [Fed Chief] Janet Yellen has made it pretty darn clear she isn’t going to raise interest rates. That certainty of higher rates has been replaced by this economic and political uncertainty.”
In an uncertain world, savvy investors traditionally turn to gold as a safe place to keep their money. On top of the sustained rally already seen this year in the gold price per troy ounce, the Brexit vote has pushed its value higher.
There is also the uncertainty of the US presidential election later in the year which could have a similar effect on the markets. Nothing is certain in investments, but a lot of the signs are pointing towards gold holding its value well over the coming months in the face of global instability.
