Time To Replace Bonds With Gold
Source: World Gold Council
◆ “It may be time to replace bonds with gold” according to the just released excellent new Investment Update by the World Gold Council.
◆ Central banks have shifted to a new regime of easy monetary policy, thus reducing expected bond returns.
◆ As negative yielding debt increases alongside stock-to-yield valuations to all-time highs, gold may become an attractive and more effective diversifier than bonds, justifying a higher portfolio allocation than historical performance suggests.
◆ Re-optimising portfolio structures for lower future expected bond returns suggests investors should consider an additional 1%-1.5% gold exposure in diversified portfolios.
Access the just released excellent report from the WGC here
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