The majority of central banks and the largest asset managers own gold. However, a large part of the public has not yet recognized that gold is a unique asset. In financial theory, gold is arguably an indispensable means of portfolio diversification. Gold is a financial and legal asset that is also easy to handle. It cannot become insolvent, nor can it go bankrupt. And the precious metal is independent of the political or financial system. Geopolitical crises and wars cannot affect gold; on the contrary, it normally benefits from crises. Just think of the crash of 1987, the internet bubble in 2000, the financial crisis from 2007 to 2009 or the coronavirus pandemic.
Gold achieved a performance of five to 50 percent plus. For some years now, financial and billionaire managers seem to be increasingly turning to gold. International asset managers have already declared their intention to maintain or increase the existing gold quota in 2023. If you compare the development of the gold price with the MSCI World Index, large stocks such as Apple, Amazon or Microsoft over the last five years with gold, gold appears to be the optimal asset. The same applies to silver, although silver is associated with a higher risk. Compared to most stock market indices or US technology stocks, gold has the best risk/return ratio.
However, investors should not invest all their assets in gold, as there are naturally good and not so good phases. This is why the precious metal is considered a portfolio diversifier. Incidentally, gold has outperformed bonds by almost 6.5 percent per year since the end of the gold standard. This puts the precious metal almost on a par with equities. Shares in gold companies would also be a desirable component of a portfolio. There is Miata Metals or Fortuna Mining, for example.
Fortuna Mining - https://www.commodity-tv.com/ondemand/companies/profil/fortuna-mining-inc/ - is a successful gold and silver producer. The projects are located in Mexico, Peru, Burkina Faso, Argentina and the Ivory Coast.
Miata Metals has earn-in options to acquire a 100% interest in the Sela Creek gold project in Suriname and the Cabin Lake property in British Columbia. At Sela Creek, samples recently returned up to more than 133 grams of gold per tonne of rock.
Current company information and press releases from Miata Metals (- https://www.resource-capital.ch/en/companies/miata-metals-corp/ -) and Fortuna Mining (- https://www.resource-capital.ch/en/companies/fortuna-mining-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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