Gold as a Portfolio Diversifier: The World Gold Council and Investing in Gold

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

The global head of investment research at the World Gold Council (WGC) has finished his presentation “The Strategic Case for Gold as an Asset Class” at the 2012 Bloomberg Precious Metals Conference in New York. As a result of the market collapse in 2008 and the ongoing euro-area crisis, investors worldwide have safety and security on their minds, and many in the room were wondering whether gold would provide capital preservation and improve the overall risk-return tradeoff of their portfolios. At the same time, the sustained run-up in the price of gold since 2001 that was mentioned in the presentation was a cause for concern. Was gold the safe haven that it had proved to be in 2008 and 2009, or was it an asset class at the peak of a bubble? The investment case for gold deserved closer examination.

Keywords

Citation

Matos, P. and Evans, R. (2017), "Gold as a Portfolio Diversifier: The World Gold Council and Investing in Gold", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000137

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Publisher

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University of Virginia Darden School Foundation

Copyright © 2012 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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