Gold as Portfolio Insurance

Gold, according to Professor Robert Shiller, provides negative Beta to most other investments. That means that when other investments go down, gold tends to go up.

If you are concerned about the economy and direction of asset markets, then gold and gold miners may be a way to provide some insurance to your portfolio.

Please see the PP presentation “Gold as Portfolio Insurance” here:

Gold as Portfolio Insurance

One thought on “Gold as Portfolio Insurance

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  1. Hi Michael, this linked article supports your thesis. A small amount of gold or gold stocks would be part of good portfolio design in almost every portfolio at all times. In my opinion it shouldn’t be used as a market timing tool, however, as none of us can successfully predict when the market will turn one way or the other, as you and I have discussed and experienced in the past. Cheers, Tim


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