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Gold: Enhancing a Portfolio through Returns, Liquidity, and Diversification

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In this video, we delve into the importance of including gold in your diversified investment portfolio. Using charts and data from the 2024 Strategic Case For Gold Report from the WGC, we help you to learn about the potential returns, liquidity, and diversification benefits that gold can bring to your investment portfolio. Whether you're a novice investor or looking to diversify your assets, understanding the fundamentals of gold investing is essential. Watch now to enhance your portfolio with gold!

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Like fiat currency gold can also be just 'created' ... on paper


The largest metal exchange (London) is a giant Ponzi cash (fiat currency) only settled market system. Go into the London cash market with enough money to buy all of the physical gold in the world at the current market price ... and you'd find seller(s) to match that, the Paper-to-Gold ratio might increase from 125.34 to 126.34.

Nor is it a reliable/consistent inflation hedge, compare for instance the price of gold and inflation between January 1980 and December 1999.

But it is different, and as such serves as a good asset to include alongside other assets. Whatever fears/circumstances might have stocks halve in price might also see a flow into gold that drives its price to double. If you were initially holding 67/33 stocks/gold over such a period then the 67 stock value halves down to 33, 33 gold value doubles to 67, such that you're then holding 33/67 stock/gold, where no portfolio value loss had occurred and rebalancing back to 67/33 stock/gold again has you holding twice as many shares as you held before (half as many ounces of gold as before). If then values revert to former levels, stocks double, gold halves your 67 stock value doubles to 133, 33 gold value halves to 17, combined value 150 ... you're 50% up compared to others that rode through the up's and down's and are back at break-even. In contrast you're holding 50% more shares and 50% more ounces of gold than at the start.

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