Portfolio Diversification

Portfolio Diversification

"Historically, gold has proved to be an effective preserver of wealth and a safe haven in times of economic and social instability. In a period of a long bull run in equities, with low inflation and relative stability in foreign exchange markets, it is tempting for investors to expect continual high rates of return on investments. It sometimes takes a period of falling stock prices and market turmoil to focus the mind on the fact that it may be important to invest part of one's portfolio in an asset that will, at least, hold its value."

World Gold Council

We deal with precious metals on a daily basis, including buying, selling, and storing, and our experience has led us to perceive gold as a discrete financial and monetary asset class, a foundation asset in portfolios, and a portfolio diversifier.

Holding precious metals in a portfolio can provide hedging against macroeconomic and geopolitical risk. Gold is stable in times of geopolitical instability and economic uncertainty. Gold and gold related investments can be highly effective components of a diversified investment portfolio.

No doubt, gold helps diversify and lower investment risk. Gold has proven to improve a portfolio performance during both stable and unstable financial periods. The economic indicators that affect

the price of precious metal are different from the indicators that determine the price of most common financial assets.

 

Statistically, portfolios containing gold are generally more robust and less volatile than those that do not.

Gold is a good performing asset in both times of economic instability as well as at times of economic boom. Gold's stability remains as compelling as ever, adding a beneficial effect on expected returns. Gold is regarded a stable reserve asset by Central Bank.

Gold Bar Charts

Gold is a great way to diversify your portfolio, but before you invest in gold, you must do your research and ask the right questions, when you evaluate your options for owning gold.

 

 

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