GOLD RECOVERY ROAD KEEP AN EYE ON REVERSAL AT 1743 AT CPI NEWS
Why investors like gold
“Gold has a proven track record for returns, liquidity, and low correlations, making it a highly effective diversifier,” says Juan Carlos Artigas, director of investment research at the World Gold Council.
These qualities are especially important for investors:
Returns: Gold has outperformed stocks and bonds over certain stretches, though it doesn’t always beat them.
Liquidity: If you’re buying certain kinds of gold-based assets, you can readily convert them to cash.
Low correlations: Gold often performs differently from stocks and bonds, meaning when they go up, gold may go down or vice versa.
In addition, gold offers other potential advantages:
Diversification: Because gold is not highly correlated to other assets, it can help diversify portfolios, actually making them less risky.
Defensive store of value: Investors often retreat to gold when they perceive threats to the economy, making it a defensive investment.
Those are a few of the major benefits of gold, but the investment – like all investments – is not without risks and drawbacks.
“Gold has a proven track record for returns, liquidity, and low correlations, making it a highly effective diversifier,” says Juan Carlos Artigas, director of investment research at the World Gold Council.
These qualities are especially important for investors:
Returns: Gold has outperformed stocks and bonds over certain stretches, though it doesn’t always beat them.
Liquidity: If you’re buying certain kinds of gold-based assets, you can readily convert them to cash.
Low correlations: Gold often performs differently from stocks and bonds, meaning when they go up, gold may go down or vice versa.
In addition, gold offers other potential advantages:
Diversification: Because gold is not highly correlated to other assets, it can help diversify portfolios, actually making them less risky.
Defensive store of value: Investors often retreat to gold when they perceive threats to the economy, making it a defensive investment.
Those are a few of the major benefits of gold, but the investment – like all investments – is not without risks and drawbacks.
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