Diversification
Holding gold in a balanced portfolio can provide useful diversification benefits, and historically has maintained a low correlation with most major asset classes.
Perceived "safe haven"
Gold is often more sought-after when conditions are increasingly uncertain, or more volatile elsewhere. Unprecedented events, like the COVID-19 pandemic, can drive investors to search for relative “safe havens” such as gold.
Inflation hedge
Gold could be useful as an inflation hedge when inflation comes as a “shock” due to external factors, when prices escalate faster than expected or when central bank measures are ineffective.
Gold market insights
Quarterly gold report
In our quarterly Gold Report, we review the performance of the gold price, including flows into gold-backed exchange-traded products, and touch upon the performance other asset classes. We also explore significant macro factors, including interest rates, bond yields, the US Dollar and inflation expectations.
Transcript
What’s driving the gold price? … and other important questions
The gold price has made a series of new all-time highs over the past year, driven partly by demand from investors. Find out more about what’s been driving the gold price, as well as answers to some of the other questions that many investors have when considering adding gold to their portfolios.
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Gold FAQ
Exchange-Traded Commodities or “ETCs”, are investment vehicles that trade on stock exchanges and track the performance of an individual commodity or basket of commodities. With ETCs, investors can get exposure to spot commodity prices, without taking physical delivery of those commodities.
The LBMA is a trade association that acts as the coordinator for activities conducted on behalf of its members and other participants in the London Bullion Market.
The gold price is determined via an electronic auction that takes place twice per day in London, at 10:30 am and 3:00 pm GMT, and quoted in US dollars per fine troy ounce. The LBMA Gold Price is a fully transparent benchmark and widely accepted as the basis for pricing spot transactions.