Article below is a summary of a news article from The Sun, Tuesday May 5.
Early this week, CIMB Private Banking gave an advice to its high net worth clients to invest in gold. Its co-head Alan Inn said gold is an effective portfolio diversifier due to its lack of correlation when held up with other assets. He said that most investment portfolio mainly focus on traditional financial asset like stocks and bonds. Below are the reason that he gave for his statement:
- There is a need for diverse portfolio investment to protect the portfolio against fluctuations in the value of any single asset class.
- Gold is an unique asset class on its own and has long achieved its status as a safe heaven investment in times of 'financial and geopolitical stress'.
- Gold has been an excellent hedge against inflation and currency values for the last 30 years and also been stabilizes one's investment regardless of 'cyclical factors or economic conditions'.
- Investment in gold can be in the form of gold bullion, Exchange Traded Funds, gold futures or stocks.
# Now, do you think that only rich people with high net worth investment portfolio should invest in gold?
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