Investment Commentary

Gold as Collateral for Eurozone Sovereign Debt - The World Gold Council (WGC) has commissioned Europe Economics to provide a politico-economic assessment of its proposal for the use of gold as collateral for Eurozone sovereign debt, especially the debt of Italy and Portugal.

This report examines gold's role within a sterling-denominated investment portfolio. It uses the respected Michaud et al.'s unique Resampled Efficient Frontier™ optimisation technology to allow analysis of the statistical significance of gold for adding diversification value. The report shows how gold performs as a portfolio diversifier, a preserver of wealth and a risk management mechanism, which is particularly important during times of economic and market stress.

As part of gold's growing financial usage the World Gold Council conducted a case study to examine gold's potential role on bank balance sheets as part of new liquidity buffers being discussed in global banking regulations within Basel III. The case study examines the effect of adding gold to the Basel III Liquidity Coverage Ratio (LCR).

LCR）への影響を分析しています。

This report examines the relevance of gold as a strategic asset for euro-based investors to protect their portfolios and to mitigate the systemic risks being faced during a period of serious economic uncertainty in the Eurozone, continued concerns about economic growth in the US, and the possibility of an economic slowdown in China. It uses the respected Michaud et al.'s unique Resampled Efficient Frontier™ optimisation technology to allow analysis of the statistical significance of gold for adding diversification value.