Gold can serve as an important diversification to your investments while increasing returns for “buy-and-hold” investors. These funds include pension funds, endowments, insurance companies and sovereign wealth funds.
In a report released last week by the World Gold Council, there has been an increasing interest in alternative assets. In fact, alternatives such as private equity, hedge funds, real estate and commodities now make up about 23% of sovereign wealth fund portfolios. This is up significantly from single digits in 2000.
- Gold can serve as a key diversification to your portfolio
- Moreover, gold can serve as a complement to alternative assets
- Alternative Assets are up 23% from 2000
We believe that adding gold to a well-diversified portfolio allows investors to reap the benefits of alternative assets, while reducing the overall portfolio risk by providing additional liquidity and a negative correlation to stocks during periods of economic turmoil.
Original Source: https://schiffgold.com/key-gold-news/report-gold-can-enhance-performance-long-term-funds-include-alternative-assets/