Recently, Gold as a strategic asset 2025, edition published by World Gold Council (WGC). The report spark all those portfolio player’s by asking, what makes gold a strategic asset?
Gold has a key role as a strategic long-term investment and as a mainstay allocation in a well-diversified portfolio. Investors have been able to recognise much of gold’s value over time by maintaining a long-term allocation and taking advantage of its safe-haven status during periods of economic uncertainty.
Gold is a highly liquid asset, which is no one’s liability, carries no credit risk, and is scarce, historically preserving its value over time. It also benefits from diverse sources of demand: as an investment, a reserve asset, gold jewellery, and a technology component.
These attributes mean gold can enhance a portfolio in three key ways;
1: Delivering long-term returns,
2: Improving diversification &
3: Providing liquidity. Combined, these characteristics make gold a clear complement to stocks and bonds and a welcome addition to broad-based portfolios.
Moreover, the shift towards a greater integration of environmental, social and governance (ESG) objectives within investment strategies has important implications. “We believe gold can play a role in supporting these. Gold – from established investment sources – should be recognised as an asset that is responsibly produced and delivered from a supply chain that adheres to high ESG standards. Gold also has a potential role to play in reducing investor exposure to climate-related risks, said the WGC.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
