World Gold Council: Gold Price Volatility is Low, Exhibiting Asymmetry with Stock Performance

Odaily News The World Gold Council published an article highlighting the price volatility of gold: Gold is an excellent diversification tool in an investment portfolio, not because its price volatility is low, but because its performance is distinctly different from that of stocks and bonds. While gold as an asset exhibits lower volatility than some stock indices, other commodities, or alternatives, in certain years its gains have approached 30% (2010), and in others its losses have neared 30% (2013). It sometimes underperforms over medium-term horizons, but overall, gold's performance shows asymmetry with that of stocks. In other words, when stocks fall, gold performs significantly better; whereas when stocks rise, gold's performance is comparatively weaker. (Jin10)