Gold, a potential role in reducing investor exposure

Gold has a key role as a strategic long-term investment 

Recently, Gold as a strategic asset 2025, edition published by World Gold Council (WGC). The report spark all those portfolio player’s by asking, what makes gold a strategic asset? 

Gold has a key role as a strategic long-term investment and as a mainstay allocation in a well-diversified portfolio. Investors have been able to recognise much of gold’s value over time by maintaining a long-term allocation and taking advantage of its safe-haven status during periods of economic uncertainty.

Gold is a highly liquid asset, which is no one’s liability, carries no credit risk, and is scarce, historically preserving its value over time. It also benefits from diverse sources of demand: as an investment, a reserve asset, gold jewellery, and a technology component.  

These attributes mean gold can enhance a portfolio in three key ways; 1: Delivering long-term returns, 2: Improving diversification & 3: Providing liquidity. Combined, these characteristics make gold a clear complement to stocks and bonds and a welcome addition to broad-based portfolios.  

Moreover, the shift towards a greater integration of environmental, social and governance (ESG) objectives within investment strategies has important implications. “We believe gold can play a role in supporting these. Gold – from established investment sources – should be recognised as an asset that is responsibly produced and delivered from a supply chain that adheres to high ESG standards. Gold also has a potential role to play in reducing investor exposure to climate-related risks, said the WGC.




 

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