WGC Highlights Gold’s Strength as a Strategic Portfolio Asset
Market participants note that gold remains a natural complement to stocks and bonds, especially as traditional asset relationships evolve.
SEATTLE (Scrap Monster): Gold continues to reinforce its status as a strategic portfolio asset, supported by high liquidity, scarcity, and the absence of credit risk, said a new release by the World Gold Council (WGC).
As no one’s liability, gold has historically preserved value over time and benefits from diversified demand across investment, central bank reserves, jewellery, and technology applications. These attributes allow gold to strengthen portfolios in three key ways: delivering long-term returns, improving diversification, and providing dependable liquidity.
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Market participants note that gold remains a natural complement to stocks and bonds, especially as traditional asset relationships evolve. Rising inflation in recent years has weakened the historic balancing role of bonds, as correlations with equities have increased. By contrast, gold has demonstrated resilience across market cycles, generating positive long-term returns during both economic expansions and periods of stress.
Gold’s demand structure further supports its performance. During times of uncertainty, counter-cyclical investment demand typically drives prices higher, while during economic growth phases, pro-cyclical consumer demand from jewellery and technology underpins returns.