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PwC: Gold Is a "Re-Emerging Asset Class"

CommissarJones
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PwC: Gold Is a "Re-Emerging Asset Class"

#118466

Postby CommissarJones » February 15th, 2018, 9:08 pm

PwC extols the virtues of gold in this piece of research on alternative asset classes and sovereign wealth funds.

PwC wrote:In fact, over a five-, ten-, and twenty-year basis, gold has provided one of the best diversifications against stocks, with a correlation of 0.04, -0.05, and -0.07 respectively. ... In addition to being a hedge against crises, gold outperformed all traditional asset classes on a ten- and twenty-year basis, with annualised returns of 6.7% and 6.8% respectively, making it an important consideration for long-term investments.

The above is from the executive summary; a more detailed section on gold begins on page 29.

RececaDron
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Re: PwC: Gold Is a "Re-Emerging Asset Class"

#118485

Postby RececaDron » February 15th, 2018, 11:24 pm

Look at the long term monthly chart (XAU/USD).

Appears close to completing a near-5 year base building process. Once it does, expect a rapid test of 1520.

Just needs a 'narrative' to emerge...

77ss
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Re: PwC: Gold Is a "Re-Emerging Asset Class"

#118492

Postby 77ss » February 15th, 2018, 11:58 pm

CommissarJones wrote:PwC extols the virtues of gold in this piece of research on alternative asset classes and sovereign wealth funds.


Thanks for that - an interesting report.

To be honest, I don't think I shall be investing in gold - or gold miners, but I read the the section on Private Equity with considerable interest, as I put some cash into a couple of different PE IT's last year.

According to the PwC report, PE has outperformed all the other asset classes considered, over 5,10 and 20 year periods, with annualised returns of 13.6%, 8.6% and 8.6% respectively. The corresponding figures for gold are -4.9%, 6.7% and 6.8%.

I do accept, of course, that there other reasons why one might wish to hold gold.


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