GoldCore Test

FINANCEGoldcoreWhy gold is a vitaldiversification for today“Gold can serve as a hedge against declining values of key fiat currencies.” These are notthe words of some so called‘gold bug’warning that currencies are set to collapse in value.Rather, they are part of the recent findings of the UK’s influential and respected ChathamHouse or the Royal Institute of International Affairs. Article by Gold protects people from inflation and currency THE KEY TO SUCCESSFUL debasement and has served as a vital wealth LONG TERM INVESTING Mark O’Byrne preservation tool. IS DIVERSIFICATION AND OWNING A RANGE OF HEAD OF RESEARCH AND We are living in volatile times and investors face DIFFERENT QUALITY ASSETS. EXECUTIVE DIRECTOR, GOLDCORE challenges in the coming years – the Euro zone debt crisis is far from resolved. Debt crises tend to lead to It is not just the wealthy that are buying gold.“ Holding gold – the world’s only currency devaluations and currency crises. There is broad based global demand. In particular, independent currency – gives you some interest from China, India and the rest of Asia has protection against the incompetence and Smart money in the form of wealthy individuals, grown very significantly.idiocy of Europe’s bickering politicians. So keep it.” pension funds, companies, endowments, charities, The second quotation is from one of the most foundations, family offices, hedge funds and central The growing middle classes and very wealthyrespected financial experts in the UK, Merryn banks are diversifying into gold today. in Asia trust in gold as a better store of value thanSomerset Webb. paper currencies. Chatham House and Somerset Webb are part GOLD IN EUROS – 5 YEARSof a growing consensus about the importance of Greater demand from investors and centralhaving an allocation to gold as part of diversified 1400 banks globally will see gold prices rise materiallyinvestment and pension portfolios. 1300 in the long term. Gold is likely to double to overIMPORTANCE OF REAL DIVERSIFICATION 1200 $2,400/oz in the coming years due to a doubling“Tis the part of the wise man to keep himself today 1100 in Chinese, India and Asian demand and globalfor tomorrow, and not venture all his eggs in one 1000 investment demand. EGbasket” – Cervantes in Don Quixote in 1605 900 For further information, please visit: The key to successful long term investing is 800 www.goldcore.comdiversification and owning a range of differentquality assets. Jan 11 Jan 12 Gold Gold has been shown to enhance returns andto reduce overall volatility over the long term. This Jan 13 Jan 14 Jan 15was clearly seen during the financial crisis whengold was one of the very few assets to surge in value. The importance of owning gold has been shownin numerous academic papers. It has been shownin independent research by the asset allocationspecialists, Mercer Consulting and IbbotsonAssociates. It has also been shown by consultinggroup, New Frontier Advisors. Chatham House concluded in their recentreport that gold may “continue playing a significantrole in the international monetary system, servingas a valuable hedge and safe haven, particularly intimes when tail risks predominate”. A 10 per cent allocation to gold is prudent inthese uncertain times and a way to hedge fallsin stock, bond and property markets. It is also away to hedge the possibility of bail-ins or depositconfiscation and of course currency devaluations. The historical record also shows how gold hasprotected people from stock and property crashes.16 EXECUTIVE GLOBAL • Productivity, Strategy, Profitability