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World Gold Council/Staff/5-18-2020
“Risk assets have moved rapidly out of favour in recent weeks. As the Covid-19 pandemic has prompted a widespread reassessment of global economic prospects, investors have rotated into safe-haven assets, including gold. Some haven assets have delivered better returns than others, however. And gold has been one of the best performing safe-haven assets this year. Between 1 January and 20 April 2020, gold outperformed US treasury bonds and bills, USD-denominated investment grade US agency and corporate debt, and Eurozone sovereign bonds.”
USAGOLD note: Though aimed at central bankers, the tenets reviewed applied to the well-run private investment portfolio as well. “Central bank reserves,” says the Council, “are typically constructed according to three guiding principles: safety, liquidity and return. The Covid-19 pandemic has reinforced the significance of these principles and, by extension, the importance of smart and sustainable reserve management.” Sounds about right ……
Chart courtesy of the World Gold Council