Strategic Investment

The conversation among private wealth advisors is no longer about if they should invest in gold but rather, how much to invest. Bob Alderman, Managing Director for the World Gold Council, explains from Opal Financial Group's 2013 Family Office & Private Wealth Management Forum.

We also highlight that higher portfolio risk- consistent with a rotation out of cash or bonds into equities- warrants a higher strategic gold allocation.

Investors in developed markets face an economic environment marked by aggressive monetary policies, high debt-to-GDP ratios, and challenges to the long-term strength of their currencies.

This second edition of Gold Investor includes four papers: I. Investment commentary: first quarter 2013; II. Gold and currencies: protecting purchasing power; III. Gold in the "Great Rotation"; IV. Gold holdings: ample room for growth in a broad and liquid market.

Our analysis shows that despite the recent pullback in the gold price, gold has never been more relevant as an investment asset and currency. Whether acting as an inflation hedge, a tail-risk hedge or a tool to hedge against debasement, gold’s qualities seem tailor made for these turbulent times.

This paper explores the advantages and costs associated with hedging foreign-exchange exposure. With current prospects for domestic equity returns uncertain and bond yields low across most developed economies, the interest among investors in allocating a greater proportion of assets in new markets has been growing.

This article discusses the benefits of including gold as a tail-risk hedge from an international perspective and compiles research findings from previous studies.

Natalie Dempster, Director of Government Affairs, World Gold Council, discusses gold-backed bonds with Professor Ansgar Belke.

This report examines gold's role within a sterling-denominated investment portfolio. It uses the respected Michaud et al.'s unique Resampled Efficient Frontier™ optimisation technology to allow analysis of the statistical significance of gold for adding diversification value. The report shows how gold performs as a portfolio diversifier, a preserver of wealth and a risk management mechanism, which is particularly important during times of economic and market stress.

This chapter was first published by Central Banking Publications in their annual “RBS Reserve Management Trends”, in April 2012. The chapter address the question of how much gold emerging market central banks should be holding from a domestic currency perspective. It examines the performance of a typical central bank portfolio when denominated in nine emerging market currencies.

LCR）への影響を分析しています。