The reincorporation of gold into mainstream finance
“Gold was questioned as a safe haven asset in 2008, as it initially declined with other commodities (though closing the year higher). The dramatic continuing decline in interest rates and the advent of negative nominal rates across much of the bond space has made gold more competitive. Major financial institutions, like Bridgewater, have focused extensively on how gold works within a diversified portfolio. Gold is no longer viewed simply as an Armageddon asset class, but rather as one that can provide significant diversification benefits.”
USAGOLD note: McGuire is the Portfolio Manager of Emerging Markets and Gold Fund for the Teacher Retirement System of Texas.
Repost from 9-28-2020