Gold as a Currency in Your Portfolio

IMG Auteur
Bullion Vault
Published : March 31st, 2014
316 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Market Analysis

Director of Investment Research for World Gold Council speaks on gold as currency...

JUAN-CARLOS ARTIGAS manages the Global Investment Research team at the World Gold Council, the global authority on gold-related research.



Providing oversight of research initiatives related to investor portfolios, he is a regular presenter at industry conferences and is a sought-after speaker for institutional and private investors who seek his expertise on the strategic case for gold.

Speaking with me this week in my regular podcast interview, Juan-Carlos and I discussed: 

  • Where does gold fit in the investment portfolio – its purpose and allocation?
  • Should gold be considered as a currency or commodity?
  • How big is the gold market – what is the importance of liquidity?

Looking at the size and liquidity of the gold market, "Understanding gold as a currency is easier," said Juan Carlos Artigas.


Discover Business Internet Radio with New York Markets Live on BlogTalkRadio


"It makes more sense in portfolios when you consider it a currency. We do think that gold stands completely apart from commodities. The gold market is extremely liquid. According to the London Bullion Market Association, gold trades $240 billion a day. To put it in perspective, all of the Dow Jones combined trades at $20 billion a day. Gold trades more than 10 x the Dow in a day. It is not officially a currency but it is treated as such in many cases." 

Going on, Juan Carlos Artigas of the World Gold Council said that "We don't look at gold in isolation, rather we look at the benefits that gold brings to all investments, stocks, bonds, real estate or other alternatives.  We have found through our research that holding 2-10% of gold in a portfolio reduces volatility and losses in times of systemic failure of equity and fixed income markets.


"We found that investors holding gold in times of systemic losses alone reduced losses 7.5%..."


<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Miguel Perez-Santalla is vice president of business development for BullionVault, the physical gold and silver exchange founded a decade ago and now the world's #1 provider of physical bullion ownership online. A fierce advocate for retail investors, and a regular speaker at industry and media events, Miguel has over 30 years' experience in the precious metals business, previously working at the United States' top coin dealerships, as well as international refining group Heraeus.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.