The 'Gold: Alternative Investment, Foundation Asset' report claims that, alongside several other alternative assets, such as hedge funds, commodities, currencies, real estate and forestry, gold can help to diversify a portfolio against risk.
AAA, an advocate of alternative investments, backed the support for gold as a promising asset. It said that despite the fact that gold prices seem to be stabilising, it is unlikely that gold will lose significant value, particularly over the long term. “Gold is still seen as a safe bet during economic turmoil,” added Anthony Johnson, AAA’s analysis partner.
Juan Carlos, the Investment Research Manager for the World Gold Council, added that alternative investments in general are looking more and more attractive as traditional assets struggle. He stated, “Alternative assets have gained acceptance among private and professional investors over the past decade as they look to increase risk-adjusted returns.
“Including gold can produce distinct benefits to the performance of an alternatives portfolio due to its deep liquidity, low correlation to most asset classes and outperformance during periods of systemic risk, "added Mr Carlos.
AAA claims that diversification is an important thing to consider when establishing an investment portfolio in the current climate, as it is always advantageous to invest in asset classes that will make money when stock and shares are losing value, explained Mr Johnson.
“Forestry is a favourite of ours at the moment, as it offers a financially viable and ethically attractive option,” added Johnson. AAA supports the work of sustainable forestry managers in emerging economies, such as Greenwood Management, which plants non-native trees in Brazil and delivers strong returns for investors all over the world.
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