A New Gold Rush: Investing in Precious Metals

Abstract

Following a huge run-up in the 1970s, precious metal prices have, until recent years, been very subdued. Investors tend to overlook precious metals, except to take note of the strong correlation properties with other asset classes, which justifies only a small allocation. However, given current macroeconomic conditions and the extreme policy response that has been initiated due to these conditions, investors should not only be looking at the correlation properties, but also the exceptional returns that precious metals will provide in the coming years.

TOPICS: Other real assets, portfolio construction, performance measurement