WGC Published ‘Gold as a Strategic Asset' - 2025 Edition

SEATTLE (Scrap Monster):  The World Gold Council (WGC) announced publication of ‘Gold as a Strategic Asset- 2025 Edition’.

The paper asserts that gold is an essential component of a well-diversified portfolio and a strategic long-term investment. Gold has been a long-term source of return for investors who have benefited from its safe-haven status, particularly during uncertain economic times.

Despite the robust performance of riskier assets, the WGC study pointed out that gold has done well over the last 1, 3, 5, 10, and 20 years. Gold has been regarded as an inflation hedge and has historically increased in value during times of high inflation. In addition, the yellow metal has been less erratic than other assets. Coincidentally, since 1971, the value of gold in US dollars has increased by 8% year.

The paper also lists possible dangers and difficulties for gold. First off, unlike other asset classes like bonds or real estate, gold does not yield a consistent income. Additionally, the price of gold has shown significant volatility. In certain years, for example, it has reported earnings of over 30%, while in other years, it has reported losses of nearly 30%.

According to the WGC assessment, the continued political and economic unpredictability as well as economic worries about the stock and bond markets are anticipated to contribute to gold's continued appeal as a consumer commodity and investment.

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