On this edition of our quarterly research journal we analyse gold’s positive link to economic growth; explore its value as a tail-risk hedge comparing it to other hedging strategies; and discuss the impact that ETFs have had on the gold market since they were first introduced.
The latest edition (Volume 7, September 2014) includes three articles:
I. The growth dividend: how rising GDP lifts gold consumer demand
II. A practical hedge: less exotic, multipurpose, lower cost
III. Ten years of gold ETFs: a wider and more efficient market
The World Gold Council’s leading industry publication on gold demand trends, analysed by both sector and geography for the second quarter of 2014.
This latest edition examines gold’s performance during the first half of 2014 and focuses on two trends that, in our view, support adding gold to portfolios as a means of protection and risk management:
- Record issuance of lower-rated bonds across markets
- The historically low volatility environment.
Gold has unique properties as an asset class. The diversity of gold-backed and gold-related products means that gold can be used to enhance a wide variety of individual investment strategies and risk tolerances.
Our analysis shows that gold can be used in portfolios to protect global purchasing power, reduce portfolio volatility and minimise losses during periods of market shock.
It can serve as a high-quality, liquid asset when selling other assets would cause losses.
Explore the factors that have driven China’s rise to become the number one producer and consumer of gold and why the market will continue to expand, irrespective of short term blips in the economy.