Strategic Investment

This report shows that gold does not only help to increase expected risk-adjusted returns in a portfolio but can also significantly mitigate the potential for wealth to be eroded by extreme events, as evidenced by statistical analysis of tail risk scenarios. Investors who do not hold gold or view it purely as a temporary safe haven asset are failing to harness its full potential to protect wealth.

A presentation by Juan Carlos Artigas of World Gold Council.

Successive new records in the gold price have increased concerns that gold may be overvalued vis-à-vis other assets. Some investors and market commentators even question whether the gold market is in a “bubble.” This report takes a statistical approach to these concerns and examines the prospects for future gold demand.

A presentation by Natalie Dempster of the World Gold Council.

This report examines the relative performance of four traditional inflation hedges, namely TIPs, real estate, commodities, and gold over three historical periods. In two of these three scenarios, gold proved more effective than commodities, real estate and TIPS. The report also finds a strategic case for gold in the portfolio of an investor that already holds TIPS, thanks to the additional diversification benefits gold brings to a portfolio.

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.