Gold call from Nouriel Roubini: 'I prefer real gold over digital dreams'

Economist Nouriel Roubini, known for predicting the 2008 crisis, stated that gold should have a larger place in portfolios, while highlighting risks related to debt and interest rates.

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Gold call from Nouriel Roubini: 'I prefer real gold over digital dreams'

Economist Nouriel Roubini, known for predicting the 2008 global financial crisis, shared his assessments on the global economy at the SuperReturn conference held in Dubai. Roubini stated that geopolitical tensions, financial volatility, valuations in artificial intelligence stocks, and the rising stock of debt are issues that need to be monitored by the markets.

Known for his long-standing distance from crypto assets, Roubini argued that it would be wise for investors to make more room for gold in their portfolios recently. The famous economist said that gold, which is seen as a physical and traditional safe haven, stands out especially in times of uncertainty.

GOLD AND BITCOIN MESSAGE

Given some financial crises and geopolitical turmoil, it is a very smart move to weight gold. While real gold gained 60% in value last year, Bitcoin, which is labeled as 'digital gold', fell by 5%. That is why I prefer to invest in tangible and real gold instead of digital dreams struggling with volatility crises.
— Nouriel Roubini

Cryptocurrency image with Bitcoin symbol — Roubini highlighted gold against Bitcoin's high volatility.

Roubini's messages were not limited to the comparison of gold and Bitcoin. The economist also evaluated the appetite in the markets for companies focused on artificial intelligence. Stating that valuations in some technology firms that do not yet generate profit have reached extreme levels, Roubini expressed that this situation could bring a correction in stock prices.

Technology image symbolizing artificial intelligence and digital data networks — Valuation debates continue in AI-focused technology stocks.

ARTIFICIAL INTELLIGENCE AND DEBT WARNING

However, Roubini is of the opinion that the current picture will not be an exact repeat of the Dot-com bubble seen in the early 2000s. According to the economist, the fact that large technology companies driving the markets today have trillion-dollar revenues and high profitability behind them may ensure that a possible pullback remains more limited.

AI-themed image of a robot hand and a human hand reaching toward each other — Roubini pointed to the possibility of a correction in the field of artificial intelligence.

Pointing to public and private sector debt as one of the most important risks for the global economy, Roubini also drew attention to budget deficits. He emphasized that the rise of bond yields, which were close to zero a few years ago, to the 4-5 percent band today has significantly increased borrowing costs.

Close-up view of Turkish Lira banknotes — Rising interest rates and borrowing costs are one of the main agendas of the global economy.

Roubini also stated that keeping the competition between the US and China at a manageable level is critical for the global economy. Saying that technological innovations continue to create opportunities, the economist noted that investors should still take financial and geopolitical risks into account.