Financial expert Bloomberg - Cameron Crisis returned 30 years ago and found out, there were some of unfavorable periods when stocks fell by more than 20%. He'd like to watch the reaction of gold at that time.
He made a clear conclusion: "The concept of gold as a repository looks pretty good, like hedging, even without any denial of risk.".
Strong evidence was found by Chris - gold offers measures to protect against turmoil in the stock market. The financial expert consumed the CBOE volatility index (VIX) as an indicator of market risk.
Chris noted that gold rose nearly 7% in 8 out of 10 periods, and the value of the stock fell by more than 20%.
Financial expert Bloomberg created two portfolio samples and observed their work during the last 30 years: the first sample included 60/40 - a combination of stocks and bonds of the United States, and in the second - 55/35/10 - shares, US bonds and 10% of gold.
A sample portfolio with gold is better in fact as it prevails over at about 55 basis points per year!
Over a 30-year period, this half a percent per year can have a huge impact, especially if the gold also helps to reduce the volatility of portfolio.
And what he discovered - should not surprise readers of this story. It's always nice to get a "golden" confirmation. Especially for those people who have considered adding gold to their individual retirement account (IRA) or in converting a retirement plan such as the "Savings Plan" (TSP) into a gold individual retirement account (IRA) that includes precious metals.Ray Dalio of Bridgewater Associates suggests that investors consider adding gold to their portfolios, especially in the world of political today. The founder of Greenlight - David Einhorn believes that gold always remains in an attractive long-term perspective of global financial policy.
The Elite investors have a long held of the view about the gold presence in the updated portfolio for helping to hedge a risk.
Ray Dalio from Bridgewater Associates suggests to investors should consider of gold additional to their portfolios, especialy in world of political risks.
The founder of Greenlight - David Einhorn thinks, that gold always remains long-term attractive thesis of the global fiscal policy, but monetary follows by wrong direction.
Would you like to know which country purchased the most gold in 2016? India and China are often considered as a biggest fans of gold.
According to the World Gold Council, in 2016 these major players failed to become the largest investors in gold. And now this title was rightfully submitted to Germany.
Last year, German investors invested about $ 8 billion in gold in the form of coins, gold bars and exchange-traded funds.
The history of Germany, as the world's largest gold purchaser, is developing quite quietly over the past ten years. Before 2008, Germany's annual average demand for gold was 17 metric tons. Then there was a financial crisis, after which many are looking for other assets and alternatives to their currency.
German citizens are amazed to realize that their currency can become a fiat - changeable and lost in value.
Because over the past 100 years, the currency in Germany has changed eight times!
Not all German investors believe in gold as a valuable storage. For the past four years, the central bank of Deutsche Bundesbank has repatriated 674 metric tons of Cold War gold from Paris and New York. Today, Germany's central bank ranks second, in terms of the amount of gold, and foreign exchange reserves in the world, after the US Federal Reserve.
The lesson is clear: gold is still seen around the world as an object of reliable storage and an alternative to traditional money. This is great news for long-term investors.
More than ever before, investors should assume the presence of physical gold in their retirement portfolio.Bloomberg's analysis is strong evidence that gold can help maintain equilibrium in times of instability in the stock market. In fact, over the past 30 years, there has been an increase in the positive efficiency of the portfolio model with a placement of 10%.
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