Investment Commentary

This report provides further support to the thesis that while alternative investments can be powerful tools in the quest for better risk adjusted returns in a portfolio, gold stands out as a foundation to a well-diversified portfolio.

The World Gold Council commissioned Oxford Economics to conduct this independent, proprietary research study using their respected Global Model, to explore the performance of gold and other asset classes in various economic situations and to examine gold’s role within an efficient investment portfolio in divergent economic scenarios.

This report investigates the nascent use for gold as collateral for central counterparty clearing in the Global OTC markets. It examines the unique characteristics of gold which make it an ideal form of collateral.

This report examines gold's role in the portfolio for diversified investors who may already have an allocation to commodities. It shows that gold's physical attributes and functional characteristics set it apart from other commodities. This analysis shows that the effect of gold on a diversified portfolio cannot be replicated by a commodity basket alone.

This report shows that gold does not only help to increase expected risk-adjusted returns in a portfolio but can also significantly mitigate the potential for wealth to be eroded by extreme events, as evidenced by statistical analysis of tail risk scenarios. Investors who do not hold gold or view it purely as a temporary safe haven asset are failing to harness its full potential to protect wealth.

A presentation by Juan Carlos Artigas of World Gold Council.