Investment Insights

On February 5th, stock markets suffered one of their more precipitous falls in recent years. The gold price rose but, as stocks partly retraced their losses, gold trended lower.

In recent years, buy-and-hold investors such as pension funds, endowments, insurance companies, and sovereign wealth funds (SWFs) have gradually increased their investments in alternative assets to diversify their portfolios and boost returns. ‘Alternatives’ make up 23% of SWF portfolios and 24% of global pension funds, up from single digits in 2000.

Natalie Dempster, Managing Director, Central Banks & Public Policy at the World Gold Council in conversation with Will Jackson-Moore, Global Private Equity & Sovereign Investment Fund Leader at PwC on gold and alternative asset classes for Sovereign Wealth Funds.

Some commentators went as far as to claim cryptocurrencies could replace gold. Cryptocurrencies may become an established part of the financial system. But, in our view, gold is very different from cryptocurrencies.

In 2017, investors added gold to their portfolios as incomes increased, uncertainty loomed, and gold’s positive price momentum continued. As 2018 begins we explore four key market trends and their implications for gold.

Leverage agile frameworks to provide a robust synopsis for high level overviews. Iterative approaches to corporate strategy foster collaborative thinking to further the overall value proposition. 

In 2016, investors around the world returned in large numbers to the gold market, as a combination of macroeconomic drivers and pent up demand kept interest in gold high. As we start the new year, there are some concerns that US dollar strength may limit gold’s appeal. 

The global gold bar and coin market has boomed in the past 10 years. Several factors have underpinned this growth, perhaps the most important being that successive financial crises have tested investors’ faith in governments, banks, monetary policies and fiat currencies around the world.

Download our gold investment infographic; explaining key gold product groups. This graphic focusses on Bars & Coins, Gold-backed Exchange Traded Funds and Jewellery.