GOLD AS A PORTFOLIO DIVESIFIER

GOLDAS A PORTFOLIO DIVESIFIER

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GOLDAS PORTFOLIO DIVERSIFIER

Goldbeing one of the precious metals has been a favorite investment oftime of crisis. Though majority of investors view it as only favoriteduring this time majority of investors, understand that it can beused in the liability driven investment. One of the best advantagesof to invest in gold is that there is no correlation with otherassets.

Inevery investor, the objective is always to maximize the investmentand to invest in such an investment like gold that actually stand andovercome a lot of pressure during crisis and its high volatility isalways an advantage. The relation between gold and other equitiesranges as zero and this ensures that its price and value remainsunchanged in risk markets and different geographical zones. Theinflation risk is always a challenge to other pension and mutualfunds. While it’s not recommended to invest in gold in short termits value stands in the long run and always remains unaffected[ CITATION Mat12 l 1033 ].

Thedemand for gold has also increased pushing its price higher thanother investments. This has been led by consumers being very keenwith what they wear from jewelry’ to rings. Gold investing has alsofound other new ways of the old traditional ways. The gold exchangetraded fund where investors can invest in gold just like buying shareand bonds has made it possible to attract new investors in thisfield. Gold investment can be a wonderful and less risky route ofinvesting to pension fund managers as it offers a soft spot and alsogood returns if correctly calculated in the long run.

REFERENCES

Matos P, Evans R. (2012). GOLD AS A PORTFOLIO DIVERSIFIER: THE WORLD GOLD COUNCIL AND INVESTING IN GOLD. GOLD INVESTMENTS, 12.