Despite a general belief that Sovereign Wealth Funds (SWFs) do not invest in gold, our engagement with these institutions in recent years has increasingly shown that many SWFs do incorporate gold in their portfolios for diversification, capital preservation, and other factors.
Watch our Chief Market Strategist John Reade presenting the case for ‘Gold, the most effective commodity investment’ at Pensions Age’s recent virtual conference in June.
On Twitter: Juan Carlos Artigas discusses measuring gold’s performance, in response to an earlier tweet: https://bit.ly/2ZgMnCE
@BrianFeroldi @efmacpherson @JReade_WGC agreed, tons of interesting stuff – understandably common but inaccurate way to measure/compare gold's performance, most of which we cover in 'The relevance of gold as a strategic asset': https://bit.ly/2W2T6ha
1) As per @efmacpherson, gold and the dollar were pegged till 1971; need to disentangle that effect to go that far back; seen from the currency lens, gold has considerably outperformed fiat money
Gold demand in China, in particular, investment demand, has benefited from rising concerns for the economy as well as the lowered opportunity cost amid the COVID-19 outbreak and the central bank’s response to it. But with signs of a potential economic recovery emerging, can we expect gold’s attractiveness as a safe haven in China to fade? We believe that the answer is ‘No’.