HedgeNordic/Eugene Guzun/6-13-2023

“Despite gold’s proven effectiveness as a hedge against the erosion of purchasing power over the past 50 years, Nordic institutional investors have broadly refrained from including this precious metal in their portfolios. ‘It is very strange that institutional investors overlook gold when, based on return tables, the metal exhibits a very stable return profile. Since 2000, it has had only three negative years compared to eight for the broader equity market,’ wonders Strand. He emphasizes gold’s stability, attractive returns, low correlation, high liquidity, and absence of counterparty risk.”

USAGOLD note: Guzun adds that gold has returned 7.7% annually since 1971, the year the United States went off the gold standard.