Gold is an important asset class to own in a well diversified portfolio. How much gold should one have depends on depends on many factors including an individual’s circumstances. While gold does not produce income such as dividends, it can offer a cushion to a portfolio especially when equity markets turn volatile. During market downturns …
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The long-term returns of gold, stocks and US Treasuries are shown in the table below. Just like other assets, gold also outperformed other assets in some periods while under-performing in others. Overall gold has increased from $40 per ounce at the end of 1970 to $1,887.60 at the end of 2020, for an compound annual …
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The average bull and bear market lengths for gold are 63 and 44 months respectively for the period from 1970 to 2016 according to a report by World Gold Council. The table below shows the bull and bear market cycles and the corresponding returns. Gold closed at $1,789.10 on November 24th in New York per …
Continue reading ‘Bull and Bear Market Cycles for Gold from 1970 to 2016’ »
Gold is an important asset class to own in a well-diversified portfolio. Holding even a small percentage of one’s asset in gold can cushion a portfolio when markets volatile. As gold is generally considered as a safe heaven asset class, investors tend to rush into it when equities decline. Simply put, gold is a defensive …
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