World Gold Council: The dynamic of gold generating positive returns during prosperous times is likely to continue

Odaily News The World Gold Council published an article stating that over the past two decades, perceptions of gold have undergone significant changes. This reflects the increase in wealth in Eastern regions and the growing global emphasis on the role gold plays in institutional investment portfolios. Gold's unique attributes as a scarce, highly liquid, and uncorrelated asset enable it to serve as a risk diversifier over the long term. Gold's status as both an investment and a luxury item has allowed it to achieve an annualized return rate of 9% since 1971, comparable to stocks and even higher than bonds and commodities. Gold's traditional role as a safe-haven asset means it performs during high-risk periods. However, its dual appeal as an investment and a consumer good means it can also generate positive returns during prosperous times. This dynamic is likely to continue, reflecting persistent political and economic uncertainties, as well as economic concerns surrounding stock and bond markets. (Jin10)