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The US-China trade war isn’t the only thing making a strong case for gold investment this week as new economic data has raised renewed concerns that the global economy is also slowing. In times of recession, gold provides an excellent store of value and safe haven for investors so act now to add gold to your portfolio to benefit.

The global slowdown fears have been prompted by downbeat reports from several countries and major corporations.

Cisco, which the Wall Street Journal says is “considered a proxy for corporate high-tech hardware demand”, has issued a dour forecast, predicting its first revenue decline since 2017 for the current quarter despite earlier expectations of a 2.4% revenue increase.

The firm has blamed a slowdown in consumer spending for its earnings report outlook, which it linked to economic and political worries. Many economic analysts say the declining projections are symptomatic of the broader market – suggesting other firms are also at risk making gold a very attractive prospect. Amit Daryanani, an analyst at Evercore ISI explains, “…we think most of these headwinds Cisco is seeing are macro-related, given muted enterprise spend and commercial order softness (typically resilient) in addition to increasing macro uncertainty across various countries and more difficult y/y compares.”

In a piece written for Forbes earlier this week, London Business School Adjunct Professor of Economics Dr Linda Yueh says the problem is widespread and affects many economies. She notes, “We are in the downward portion of the global business cycle. Economic growth likely peaked in major economies last year and the slowdown has been pronounced especially in Europe but also in China and the United States. Coming at the end of a decade where interest rates are largely still at rock bottom and government debt levels are high…”

This has played out around the world in the last few days with figures from China confirming a faltering economy, German data showing it’s just narrowly avoiding a recession, a reduced growth forecast in Canada, Japan’s economy is stagnating and the UK is struggling to pick up momentum as Brexit weighs heavily on the nation.

While economic gloom is not good for consumer spending or market confidence, it does provide additional impetus to buy gold.

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