Gold: the most effective commodity investment

Posted on 11/30/2020


Gold: not your typical commodity

Gold is the most effective commodity investment, yet it is under-invested

Gold allocations of 2%-10% in a typical pension portfolio have provided better risk-adjusted returns than those with broad-based commodity allocations.

Investors have long recognised the benefits of investing in commodities. Over time, they have been shown to improve portfolio risk-adjusted returns, offering diversification, inflation protection and an element ofsmoothing across economic cycles.

Most investors access this asset class via commodity indices, which invariably include gold.

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