Gold News

Gold as a Currency in Your Portfolio

Director of Investment Research for World Gold Council speaks on gold as currency...
JUAN-CARLOS ARTIGAS manages the Global Investment Research team at the World Gold Council, the global authority on gold-related research.
Providing oversight of research initiatives related to investor portfolios, he is a regular presenter at industry conferences and is a sought-after speaker for institutional and private investors who seek his expertise on the strategic case for gold.
Speaking with me this week in my regular podcast interview, Juan-Carlos and I discussed: 
  • Where does gold fit in the investment portfolio – its purpose and allocation?
  • Should gold be considered as a currency or commodity?
  • How big is the gold market – what is the importance of liquidity?
Looking at the size and liquidity of the gold market, "Understanding gold as a currency is easier," said Juan Carlos Artigas.

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"It makes more sense in portfolios when you consider it a currency. We do think that gold stands completely apart from commodities. The gold market is extremely liquid. According to the London Bullion Market Association, gold trades $240 billion a day. To put it in perspective, all of the Dow Jones combined trades at $20 billion a day. Gold trades more than 10 x the Dow in a day. It is not officially a currency but it is treated as such in many cases." 
Going on, Juan Carlos Artigas of the World Gold Council said that "We don't look at gold in isolation, rather we look at the benefits that gold brings to all investments, stocks, bonds, real estate or other alternatives.  We have found through our research that holding 2-10% of gold in a portfolio reduces volatility and losses in times of systemic failure of equity and fixed income markets.
"We found that investors holding gold in times of systemic losses alone reduced losses 7.5%..."

Vice president of business development for BullionVault from 2012 to 2014, Miguel Perez-Santalla is a fierce advocate for retail investors, and a regular speaker at industry and media events. With over 30 years' experience in the precious metals business, Miguel has worked at the United States' top coin dealerships, as well as international refining group Heraeus.

See the full archive of Miguel Perez-Santalla articles.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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