Gold and S&P 500, 1999 To Today – (Bloomberg)
The importance of owning gold in a properly diversified portfolio has been shown in numerous academic papers. It has been shown in independent research by the asset allocation specialists, Mercer Consulting and Ibbotson Associates. It has also been shown by consulting group, New Frontier Advisors and by leading international think tank, Chatham House.
Gold has protected people throughout history from inflation and currency debasement. The historical record also shows how gold has protected people from stock and property market crashes, and from asset confiscation.
John Maynard Keynes is reported to have said, ‘When the facts change, I change my mind. What do you do, sir?’
The facts regarding gold have changed in recent years. Since the global financial crisis began in 2007, gold has outperformed most assets and again shown itself a safe haven. The data and research on gold over the long term is confirming this.
Our latest report, ‘Gold Is A Safe Haven Asset‘ looks at the academic and independent research in more detail.