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Invest in Gold – A Portfolio Diversifier With Staying Power

12 min read

Gold can often appear polarizing, with differing views among investors expressed about its potential benefits. There are many motivating factors for when and why to allocate to gold, with these frequently emerging strongest during extreme periods — either significant market turmoil spurring investors to seek defensive positions, or extreme market rallies in the gold price attracting interest.

This paper provides an outline of the primary benefits gold may offer portfolios relative to other major asset classes as well as its distinct contribution to portfolio strategy over the long run. It also examines how including gold in a hypothetical multi-asset portfolio may improve its risk-return characteristics.

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