Forbes: 3 Reasons Why Gold Will Outperform Equities And Bonds

Article by Katina Stefanova in Forbes

For centuries, gold has played a major role in human history and has become interwoven into the financial fabric of society. Beyond its investment following, gold has become synonymous with wealth.

We continue to see value in gold despite the recent volatility which was caused by market technical factors. The fundamental underpinnings of the long gold trade remain intact.

As a Store of Value, gold’s biggest attraction is that it maintains or even appreciates in value consistently and acts as safe-haven during market risk-off periods.

Gold tends to perform well at the time of prolonged equity corrections driven by changes in the growth environment.

Over the very long-term, gold can benefit from wealth creation, especially in emerging markets, where allocation to gold as a percent of GDP remains low. The rise of disposable income has risen in emerging markets over the past several decades and has led to an increase in financial assets and gold being held by households.

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