Gold is not perfect, but it can limit risks during downturns

A choice between the carat or the stick

Sheridan Admans, investment manager at The Share Centre looks at the arguments for and against buying gold, outlining how the performance of the precious metal has helped to protect investors’ portfolios during the recent volatility.

The arguments against owning gold tend to oscillate around the fact the physical asset does not pay a dividend or interest, it is difficult to value, and its long-term returns are poor.  Despite this, we still hold a near 10% exposure to the metal across our multi-manager portfolios and believe we will likely maintain the position for a while to come. There are a number of reasons for this. Safe bets on gold There are several characteristics to gold that have made it an important component of investors' portfolios during the recent period of volatility, driven by the global coronavi...