Is  Gold Good for <br />Portfolio Diversification?<br />www.goldratefortoday.org<br />
Gold - Portfolio Diversification<br />Portfolio diversification refers to reducing investment risk by purchasing a variety...
Gold - Portfolio Diversification<br />Gold is mostly uncorrelated with most other assets and moves independent of key econ...
Gold - Portfolio Diversification<br />It is suggested that 5% to 15% of the investment portfolio should contain this preci...
Gold - Portfolio Diversification<br />Even though gold is a good portfolio diversifier, the question is whether it outpace...
Gold - Portfolio Diversification<br />Larry Swedroe from Buckingham Asset Management compares the annual return of three d...
Gold - Portfolio Diversification<br />Once can see that the three portfolio types offer very similar returns, with the gol...
Interested in More?<br />Visit my blog:<br />www.GoldRateForToday.org<br />Live Gold Rates, <br />Independent Trading Advi...
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Gold for Portfolio Diversification?

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Gold is mostly uncorrelated with most other assets and moves independent of key economic indicators. This makes it a good diversification opportunity in portfolios. Studies show portfolios containing gold are more robust and better able to deal with market uncertainties ...

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Gold for Portfolio Diversification?

  1. 1. Is Gold Good for <br />Portfolio Diversification?<br />www.goldratefortoday.org<br />
  2. 2. Gold - Portfolio Diversification<br />Portfolio diversification refers to reducing investment risk by purchasing a variety of assets <br />A random selection of assets already reduces risk, However, diversification is more efficient, if the portfolio assets are not correlated, i.e. they do not move into the same direction. Investors seek a portfolio that has a minimum of risk and a maximum of return<br />compared to a one-asset investment <br />www.goldratefortoday.org<br />
  3. 3. Gold - Portfolio Diversification<br />Gold is mostly uncorrelated with most other assets and moves independent of key economic indicators<br />This makes it a good diversification opportunity in portfolios<br />Studies show portfolios containing gold are more robust and better able to deal with market uncertainties (Jeffrey & Jaffe 1989, FAJ)<br />www.goldratefortoday.org<br />
  4. 4. Gold - Portfolio Diversification<br />It is suggested that 5% to 15% of the investment portfolio should contain this precious metal. Since the beginning of 2000, gold has been a valuable portfolio asset<br />However, before 2000, gold was an attractive portfolio asset only between 1974 and 1979 and 1993 and 1999<br />www.goldratefortoday.org<br />
  5. 5. Gold - Portfolio Diversification<br />Even though gold is a good portfolio diversifier, the question is whether it outpaces a broader mix of commodities, or a purely non-commodity portfolio<br />www.goldratefortoday.org<br />
  6. 6. Gold - Portfolio Diversification<br />Larry Swedroe from Buckingham Asset Management compares the annual return of three diversified portfolios<br />1. a non-commodity portfolio<br />2. A portfolio with a mix of commodities<br />3. a portfolio with gold<br />From 1970 until 2010 the annual returns of these portfolios were 11.36%, 11.32% and 11.29% resp. <br />www.goldratefortoday.org<br />
  7. 7. Gold - Portfolio Diversification<br />Once can see that the three portfolio types offer very similar returns, with the gold portfolio even the lowest<br />Therefore, it can be concluded that though gold is a reasonable portfolio diversifier, there are exist equal other options<br />www.goldratefortoday.org<br />
  8. 8. Interested in More?<br />Visit my blog:<br />www.GoldRateForToday.org<br />Live Gold Rates, <br />Independent Trading Advice <br />and many Resources <br />about Gold Investing<br />www.GoldRateForToday.org<br />
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