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 resulted in higher risk-adjusted returns. Why gold, why now 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 the market, such as physical gold-backed exchange-traded funds (ETFs), but also by the expansion of the middle class in Asia and a renewed focus on effective risk management following the...
from GoldBroker.com https://www.goldbroker.com/news/relevance-gold-strategic-asset-investment-portofolio-1481
No comments:
Post a Comment