It is no secret that gold belongs in a well-diversified portfolio. But how high the share should be is the question.
A rule of thumb that has been known for decades is that there should be five to ten percent gold in a portfolio. An extensive study by the investment strategy magazine fairvalue questioned this rule. In short, if you trusted this rule of thumb, the results were not the best. In the study, a typical mixed portfolio of 60 percent global equities and 40 percent euro-denominated government bonds was added to with increasing amounts of gold. To do this, equity shares were swapped for gold. This resulted in 34 portfolio mixes and various investment periods between 1970 and October 2022, nearly 53 years of data for all three asset classes. In the process, 374 "cases" were calculated.
Without going into more detail on the sophisticated calculations (1565 investment periods were examined), it should be clear that the optimal portfolio mix cannot exist. Risk or return are personal factors. So which portfolio mixes were the best? Overall, the study suggests that a portfolio of 65 percent global equities and 35 percent gold performed promisingly.
When looking at volatility, it came out that it was on average about 20 percent lower with a gold blend. Portfolios with a mix of 35 percent equities, 25 percent gold and 40 percent euro government bonds also performed similarly well. The five-to-ten percent rule should be a thing of the past. What is important are the personal guidelines, age, risk appetite, investment horizon. In any case, gold does well, especially in the long run. If you want to bet on gold and like leverage on the price, you should look at stocks of gold companies like Aurania Resources or Aztec Minerals.
Aurania Resources - https://www.youtube.com/watch?v=sxywh9j1Cjw - focuses on precious metals and copper in South America. Flagship project is The Lost Cities project in Ecuador, located in the Andes Mountains.
Aztec Minerals - https://www.youtube.com/watch?v=rzWy9OYvJtE - has the prospective Cervantes property in Mexico (gold and copper, just over 3,600 hectares) and the historic Tombstone properties in Arizona (gold, silver, zinc, lead).
Current corporate information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -).
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.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
A rule of thumb that has been known for decades is that there should be five to ten percent gold in a portfolio. An extensive study by the investment strategy magazine fairvalue questioned this rule. In short, if you trusted this rule of thumb, the results were not the best. In the study, a typical mixed portfolio of 60 percent global equities and 40 percent euro-denominated government bonds was added to with increasing amounts of gold. To do this, equity shares were swapped for gold. This resulted in 34 portfolio mixes and various investment periods between 1970 and October 2022, nearly 53 years of data for all three asset classes. In the process, 374 "cases" were calculated.
Without going into more detail on the sophisticated calculations (1565 investment periods were examined), it should be clear that the optimal portfolio mix cannot exist. Risk or return are personal factors. So which portfolio mixes were the best? Overall, the study suggests that a portfolio of 65 percent global equities and 35 percent gold performed promisingly.
When looking at volatility, it came out that it was on average about 20 percent lower with a gold blend. Portfolios with a mix of 35 percent equities, 25 percent gold and 40 percent euro government bonds also performed similarly well. The five-to-ten percent rule should be a thing of the past. What is important are the personal guidelines, age, risk appetite, investment horizon. In any case, gold does well, especially in the long run. If you want to bet on gold and like leverage on the price, you should look at stocks of gold companies like Aurania Resources or Aztec Minerals.
Aurania Resources - https://www.youtube.com/watch?v=sxywh9j1Cjw - focuses on precious metals and copper in South America. Flagship project is The Lost Cities project in Ecuador, located in the Andes Mountains.
Aztec Minerals - https://www.youtube.com/watch?v=rzWy9OYvJtE - has the prospective Cervantes property in Mexico (gold and copper, just over 3,600 hectares) and the historic Tombstone properties in Arizona (gold, silver, zinc, lead).
Current corporate information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -).
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.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
