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The Vital Importance of Gold As A Strategic Asset In 2019

Summary:
The Relevance of Gold As A Strategic Asset (2019) – World Gold Council Gold is a highly liquid yet scarce asset, and it is no one’s liability. It is bought as a luxury good and store of value as much as an investment. As such, gold can play four fundamental roles in a portfolio: a source of long-term returns; outperforming key asset classes over 20 years & since 1971 (must see table below) 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. Average annual return of key

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The Relevance of Gold As A Strategic Asset (2019) – World Gold Council

Gold is a highly liquid yet scarce asset, and it is no one’s liability. It is bought as a luxury good and store of value as much as an investment.

As such, gold can play four fundamental roles in a portfolio:

  • a source of long-term returns; outperforming key asset classes over 20 years & since 1971 (must see table below)
  • 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.

The Vital Importance of Gold As A Strategic Asset In 2019
Average annual return of key global assets in US dollars* As of 31 December 2018.

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 2008–2009 financial crisis in the US and Europe.

Click here to read full story on GoldCore.com.

The Vital Importance of Gold As A Strategic Asset In 2019

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