World Gold Council Highlights Gold’s Relevance as a Strategic Asset

As part of diversification, institutional investors have increasingly flocked to alternative safe investments.

SEATTLE (Scrap Monster): The recent document published by the World Gold Council (WGC) analyzes country-specific gold’s relevance as a strategic asset.

According to the Council, the new decade presents renewed challenges for investors. Gold, not only has increased relevance in the current environment, but also promises to be a useful long-term strategic component for portfolios. The global financial markets continue to face uncertainty, mainly on account of rising geopolitical tensions and weak global economic growth conditions.

As part of diversification, institutional investors have increasingly flocked to alternative safe investments. Gold has been a major beneficiary of this shift in investor sentiment. The global gold investment demand has recorded an average yearly growth of 14% since 2001. Over the same period, the prices of the yellow metal have skyrocketed by almost six-fold, WGC report said.

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Further, the report highlighted that gold has outperformed other asset classes by delivering positive returns over the long run. It is considered as a hedge against inflation, especially on account of the fact that it has historically rallied in times of high inflation. Moreover, an analysis of gold’s investment performance over the past two decades underscores gold’s positive impact on an institutional portfolio.

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