The relevance of gold as a strategic asset (2019)

World Gold Council/2-5-3019

“Today, gold is more relevant than ever for institutional investors. While central banks in developed markets are moving to normalise monetary policies – leading to higher interest rates – we believe that investors may still feel the effects of quantitative easing and the prolonged period of low interest rates for years to come. These policies may have fundamentally altered what it means to manage portfolio risk and could extend the time needed to meet investment objectives. In response, institutional investors have embraced alternatives to traditional assets such as stocks and bonds. The share of non-traditional assets among global pension funds has increased from 15% in 2007 to 25% in 2017. And in the US this figure is close to 30%.”

USAGOLD note:  Gold is considered to be a “non-traditional asset” in this context, yet in reality, it may be the most traditional asset of them all.  It is wealth in its purest form – a stand-alone asset detached from any counterparty risk.  Simultaneous to this piece’s publication, Azerbaijan’s sovereign wealth fund announced it is looking to add 50 tonnes of gold to its holdings in 2019 and that it is “steering clear of larger bets on bonds and especially equities.”

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