KnowledgeLeadersCapital/Bryice Coward/6-24-2020 “These days, gold as an asset class is in an entirely unique position to no
“These days, gold as an asset class is in an entirely unique position to not only provide upside potential, but also provide a layer of diversification within a portfolio that neither stocks nor risk-free nominal bonds can achieve on their own or even together. Much of this has to do with the rather disadvantageous position of risk-free bonds at the moment that have brought us to the death throes of the 60:40 portfolio. Indeed, with risk-free rates so close to zero (even on the long end), bonds simply don’t have enough convexity (aka capital appreciation potential) left in the tank to act as a sufficient diversifier of equity risk.”
USAGOLD note: There are many avenues to wealth through investments, but few options when it comes to protecting it when the chips are down. This article explores the possibility of a new role for gold in the portfolio – one built on its historic reputation as the ultimate store of value and asset last resort and given impetus by the now endangered 60:40 portfolio structure.