Ramesh Mantri, chief investment officer at WhiteOak Capital, has a compelling perspective on gold. Mantri's take is that the asset class extends far beyond a commodity to being the ultimate currency.
Mantri told NDTV Profit on Wednesday that gold is also an indicator of global apprehension. His take is backed by gold's historical significance even amid uncertain financial situations.
Mantri believes that gold's status as a global currency shows its enduring nature, especially when contrasted with currencies like the US Dollar. "Gold has been the defining currency for global trade," he said, highlighting this through the relatively recent advent of the dollar.
"The dollar as a currency is only 75 years old, so gold, even though it is a metal, is the ultimate currency in the world," he added. This perspective is based on gold's inherent stability and global acceptance, making it a safe-haven asset, especially in times of geopolitical flux.
"When there is a risk environment, the dollar gets a bid up. When there is uncertainty with the dollar as well, that's when gold becomes attractive," he said. Global investors have relied on gold to hedge against uncertainty, particularly when confidence in the US dollar wavers.
Mantri brings into the picture the declining willingness of countries to place trust in each other's currencies as well. This has further supported gold's position, as central banks have notably bumped up their gold reserves as well.
"Gold is the ultimate indicator of fear," Mantri concluded, solidifying its role in global finance and a fear indicator within the economic system.
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