World Gold Council or WGC stated in a latest update that the rise of alternative assets in institutional portfolios has been driven by the pursuit of enhanced returns, broader diversification, and insulation from traditional market cycles. It noted that these benefits often come with trade-offs – limited liquidity, delayed valuations, and exposure to economic shocks that may not be fully priced in real-time. WGC noted that while Gold is not always classified as an ‘alternative’, it offers distinct advantages: it is highly liquid, lowly correlated to other asset classes, and tends to perform well during periods of systemic stress, with its inclusion in a portfolio acting as a shock absorber. To investors, public and private markets exist along a continuum of liquidity, returns, and volatility. The difference is one of timing and access. Gold exists in this continuum, not because it mimics public or private assets, but because its attributes bridge across both.
More News
|
|