Gold as a strategic asset
The relevance of gold is no one’s liability Recently the World Gold Council has published, The relevance of gold as a strategic asset (2019), from investment perspective. That says 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, 1: a source of long-term returns, 2: a diversifier that can mitigate losses in times of market stress, 3: a liquid asset with no credit risk that has outperformed fiat currencies & 4: 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 resulted in higher risk-adjusted returns. The WGC says, Gold is becoming more mainstream. Since 2001, investment demand for gold worldwide has grown, on average, 15% per year. This has been driven in part by the advent of new ways to access t...