Regional Insights

Rates and inflation may stay elevated for longer, posing risks to investors' portfolios. Our analysis shows that gold could help improve portfolio performances as a consistent and effective risk diversifier.

While gold investments have been gaining popularity among Japanese households, both life, and property and casualty (P&C) insurers have made limited gold investments, despite the sheer size of the Japanese insurance market in terms of premiums and assets.

Over two thirds (69%) of Australians with a superannuation fund (“Super”) feel optimistic about their future, though almost half (44%) acknowledge that they might need to make sacrifices to meet their desired retirement lifestyle. These were some of the findings of a survey commissioned by World Gold Council (WGC) to gain greater insight of Australians’ approach to, understanding of, and sentiment towards, financial planning for retirement.

Upbeat growth prospects for the global economy, led by the US are cause for optimism in the financial markets. However, challenges and risks prevail. As such, we believe that investors should look closely at the benefits gold can bring to their portfolios.

In 2023, China’s wholesale gold demand improved and the PBoC’s gold reserves kept rising. Meanwhile, the local gold price premium saw a sizable increase.

We surveyed 1,000 people in the UK to learn about retirement planning and, importantly, if gold could play a greater role in UK pensions. The results point towards a clear growth opportunity for gold ownership in the pension space.

As we look forward to 2024, we explore three economic scenarios and their likely impact on gold. Historically, gold has had a flat performance during consensus-favoured ‘soft landings’; however, geopolitical risks, central bank buying and the spectre of a recession may provide additional support for gold.