Diversify investments

The geopolitical tension between Russia and Ukraine has had a significant impact on financial markets and commodities across the globe, especially on oil.

This volatility created some uncertainty, but this was an opportune time for investors to think of strategic ways to diversify their investment exposure through gold and Krugerrands.

Physical commodities are used by investors to spread portfolio risk, as certain commodities do not move in tandem with the equity market.

One such commodity is gold, which is an advisable diversification tool for investors to turn to in times of market uncertainty, as it helps protect their investments from unfavourable market movements.

Returns on gold do not move with the market and at times of market stress usually moves in the opposite direction, making it a very useful tool when looking to spread risk in a portfolio.

There are several investment options available for an investor to obtain exposure to gold.

An investor can invest in shares of companies which mine gold, gold exchange-traded funds and directly through Krugerrands.