RELATIVE PERFORMANCE
Over the past ten years, gold has outperformed the next best asset class by a factor of just over two. Its outperformance against equities has been consistent over past one, three, five and ten years and for that matter gold has also been the least volatile asset class.
Its correlation with equities has remained zero or modestly negative, giving strong portfolio diversification. On an average monthly return basis gold tends to outperform when equities perform poorly.
---relative performance of different sterling based asset classes in each year from 2002 onwards and also showed that over the past ten years gold’s annual return has been 14.3% in sterling terms, compared with 5.9% pa from bonds, 1.6% in cash and just 1.2% in real estate. Equity returns were negative.
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