Is gold a durable asset?

Gold has long been considered a durable store of value and a hedge against inflation. However, in the long term, both stocks and bonds have outpaced the rise in the price of gold, on average. Some people argue that gold has no intrinsic value, that it is a barbaric relic that no longer possesses the monetary qualities of the past. They argue that in a modern economic environment, paper money is the preferred currency; that gold is only good as a material for making jewelry.

Gold has one of the longest and strongest histories of all asset classes, as it has been a store of value for thousands of years. While Bitcoin is consolidating as an asset class, the inherent scarcity of both assets may help them perform well if monetary inflation persists. Overall, gold has been a store of value for thousands of years and is likely to continue to be a store of value for thousands more. On the consumer side, the combined share of global demand for gold in India and China rose from 25% in the early 1990s to more than 50% in recent years.

Asset allocation analysis indicates that, for investors based on the U.S. dollar, holding 2 to 10% in gold as part of a well-diversified portfolio can further improve performance (chart). The company continues to actively participate in producers, since the gold extracted is cheaper than the spot price of ingots, he says. Although silver can be polished and textured in multiple ways to capture light and attention, there is no metal left like gold.

We can see that, in the long term and as a means of preserving wealth, gold has worked very well throughout history and can withstand major financial crises. We organize a secure vehicle to greet the customer at the safe facility and deliver the gold bars to an LBMA approved refinery to authenticate them on their behalf. Gold is the metal we'll turn to when other forms of currency don't work, which means that gold will always have value in difficult and good times. In times of political and economic uncertainty, investors often flock to the safe haven asset of gold, which offers protection against systemic risk.

Calculations in US dollars of the 3-month Treasury total return indices of the ICE, Bloomberg Barclays US Bond Aggregate, MSCI US, EAFE and EM, the Bloomberg commodity index and the LBMA Gold Price PM spot. Gold can stimulate a subjective personal experience, but it can also be objectified if adopted as an exchange system. Indeed, the return on gold has surpassed the U.S. Consumer Price Index (CPI).

Long-term U.S. government due to its numerous sources of demand. By providing positive returns and reducing portfolio losses, gold has been especially effective in times of systemic crisis, when investors tend to withdraw from stocks. Because gold has low correlations with stocks, bonds and real estate, many money managers believe that it has a place in every portfolio.

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