first_img “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. Gold price tumbling to cover margin calls! Do safe-haven investments exist? Enter Your Email Address Kirsteen Mackay | Monday, 2nd March, 2020 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Our 6 ‘Best Buys Now’ Shares In recent years, political tensions have risen globally in response to the US-China trade-war, tricky Brexit negotiations and various international crises. In turn, the price of gold has rallied.Many investors like gold as an addition to their portfolio to hedge against market crashes, which is why it’s classed as a safe-haven investment.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…As recession loomsNot that long ago, coronavirus was a mere cloud on the horizon, but it’s now a full-blown storm and last week caused global financial markets to crash.In an unexpected turn of events, gold has also seen signs of a sell-off. Why? In a nutshell, ‘asset-liquidation’. This is when people sell off their assets to meet their financial needs.Many institutional investors, including hedge funds, insurance companies and banks, will have margin calls to meet. This is when they’ve bought stocks with money that doesn’t belong to them, i.e. on-margin. A margin call occurs when the borrowing hits a certain point, triggered by losses in the markets.These investors then must pay back what they owe, so will liquidate other assets to do so.This should not be a scenario long-term investors find themselves in because it’s usually day-traders who buy shares on margin. However, every investor should know most shareholders in financial markets are institutional, and not individual. This means it’s the institutional investors that move the markets and not the little guys like you and me.Portfolio diversification is goodI don’t think holding bullion in your portfolio is a bad idea. It’s a sensible thing to do if you’re diversifying your range of investments.I do think safe-haven investments exist, and gold is most definitely one of them. However, be wary of buying it when the price is high, as there’s always a risk of its price falling when asset-liquidation comes into play. This is something that happened in the 2008 global financial crisis.We could say the same of any asset though, including bonds, index funds and equities. Never buy at the height and never sell at the bottom of market fluctuations.Although the markets have tumbled, I don’t think it’s a good idea to be buying some equities until we know more about the spread of the virus and can see an end in sight.Nevertheless, I think it’s the perfect time to do your research. There are many FTSE 350 companies that will soon be in bargain territory, and it would be a shame to miss out. Look for companies recently overpriced and that can recover quickly. Shares that spring to mind include advanced technology engineer Meggitt and pharma giant Astrazeneca.I’ll also be updating my watch list with less popular stocks that may rebound in a recession. These include FTSE SmallCap warehouse and logistics firm Wincanton. It has a £330m market cap, a price-to-earnings ratio of 7 and 4% dividend yield, but it has a high level of debt.Meanwhile funeral plan retailer Dignity has a £286m market cap, P/E is 9 and its dividend yield is 4%. It’s a share that will see its business in demand in good times and bad. Earnings per share are 63p, but it too has high debt.For now, I think it’s best to watch and wait, as Warren Buffett once said: “Risk comes from not knowing what you’re doing”. Simply click below to discover how you can take advantage of this. Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended AstraZeneca and Meggitt. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Kirsteen Mackaylast_img read more