Most investors access this asset class via commodity indices, which invariably include gold.
But gold’s weighting within these indices undervalues its importance as a strategic portfolio asset. Gold is, of course, a raw material used in the production of manufactured goods – the very definition of a commodity. But gold is much more than that. Gold is an investment as much as a consumer good, it is a multi-faceted asset that enjoys diverse supply and demand dynamics that play an important role in gold’s performance.
Standing apart from the commodities complex, gold deserves to be seen as a differentiated asset as it has historically benefited from six key characteristics.
Capital Limited (LON:CAPD) provide complete exploration and production drilling solutions to customers within the global minerals industry, with a focus on the African markets.