The case for an allocation to gold in a multi-asset portfolio lies more in its potential as a form of insurance than as a safe-haven investment, explains Adrian Ash
As 2019 begins, gold has again found favour among investors. Driven by the winter's sudden slump in global equities, holdings in gold-backed exchange-traded funds have grown near record levels, and hedge funds have turned net bullish on gold derivatives after the metal shrugged off last year's heavy short-selling. Together this revived interest in gold helped prices reach multi-month highs for euro and sterling portfolios this New Year. Yet while the specific risks 2019 brings may warrant taking a speculative position, there is a strong case for always considering an allocation to gold i...
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