The relevance of gold as a strategic asset

17 January
World Gold Council Report:

“Gold is a highly liquid yet scarce asset, and it is no one’s liability. It is bought as a luxury good as much as an investment. As such, gold can play four fundamental roles in a portfolio:
• a source of long-term returns
• a diversifier that can mitigate losses in times of market stress
• a liquid asset with no credit risk that has outperformed fiat currencies
• a means to enhance overall portfolio performance.

Our analysis shows that adding 2%, 5% or 10% in gold over the past decade to the average pension fund portfolio would have both increased returns and reduced volatility, resulting in higher risk-adjusted returns.”

 

Read the full report here