FAQ – Why invest in gold is often asked. Investors often choose tangible investments like gold bullion bars to protect their wealth and secure their purchasing power over time.
Gold helps manage risk by increasing returns and reducing expected losses in extreme circumstances. Gold’s unique correlation to other assets benefits both short-term and long-term holders, especially during market turmoil. In particular, long-term holders can manage risk without sacrificing returns.
Even small allocations to gold, ranging from 3% to 10%, positively impact portfolio structure. These allocations can reduce Value at Risk (VaR) while maintaining similar returns to portfolios without gold.
Gold stands out as a part commodity, luxury good, financial, and monetary asset, behaving differently from other asset classes.
Finally, gold’s liquidity and lack of credit or counterparty risk make it valuable during periods of financial distress.
