1
Portfolio Diversification
Portfolio Diversification
Gold has a low correlation to other financial assets, which allows gold to help lower portfolio volatility when other assets experience decline.
2
Risk Mitigation
Risk Mitigation
Managing risks is critical to optimizing portfolio performance. Gold's historical benefits during up markets and down can provide ballast for portfolios.
3
Long-term Performance
Long-term Performance
Gold has historically provided competitive long-term returns through a variety of market cycles. Adding gold may improve portfolio risk-adjusted returns over the long run.
4
Wealth Preservation
Wealth Preservation
Longer term, gold can potentially provide a unique store of value for investors. Gold has kept up with rising prices since the current free market opened in 1971.
5
Liquidity
Liquidity
Gold has a relatively deep and liquid trading market. Gold-backed ETFs provide additional liquidity in an accessible, easy-to-trade wrapper.
6
Diverse Demand Sectors
Diverse Demand Sectors
Gold plays many roles - as an investment, as a consumer good, and as a reserve asset. Demand from multiple sources may bolster gold’s price.