<p>At a time when investors are spooked by the spread of <a href="http://www.deccanherald.com/tag/coronavirus" target="_blank">COVID-19</a> and the markets remain volatile, the World Gold Council (WGC) said gold can provide liquidity with no credit risk and improve overall portfolio performance.</p>.<p>Gold is a clear complement to stocks, bonds and broad-based portfolios, as it is a hedge against systemic risk, currency depreciation and inflation, WGC said in a report ‘The relevance of gold as a strategic asset: Indian edition’.</p>.<p>It has historically improved portfolios' risk-adjusted returns, delivered positive returns and provided liquidity to meet liabilities in times of market stress, it noted.</p>.<p>“Today, gold is more relevant than ever before for the Indian investors. In such times of uncertainties and global market turmoil, gold possesses the ability to significantly improve risk-adjusted returns of portfolios across various levels of risk and act as a hedge against inflation and our data confirms this,” WGC Managing Director, India, Somasundaram PR said.</p>.<p>A well-diversified portfolio with gold will also tend to avoid panic reaction to market movements, and in a way, act against exacerbating the volatility, he opined.</p>.<p>“The average annual return of gold of 10 per cent since 1981, has outpaced the Indian consumer price index (CPI) that averaged over the period at 7.35 per cent.</p>.<p>“Gold also protects investors against extreme inflation. Gold's unique attributes as a scarce, highly liquid and un-correlated asset highlight that it can act as a genuine diversifier over the long term,” he said.</p>.<p>In India, gold's dual position as an investment and for adornment has allowed it to deliver average returns of approximately 9 per cent over the past 10 years, comparable to stocks and bonds and commodities, he said.</p>.<p>“Over the long term, therefore, gold has not just preserved capital, but helped it grow,” he added.</p>.<p>Perceptions of gold have changed substantially over the past two decades, reflecting increased wealth in the east and a growing appreciation of gold's role within an institutional investment portfolio worldwide, the report said.</p>.<p>Gold's traditional role as a safe-haven asset means it can demonstrate its qualities during times of high risk, however, its dual appeal as an investment and a consumer good means it can generate positive returns in good times too, it added.</p>
<p>At a time when investors are spooked by the spread of <a href="http://www.deccanherald.com/tag/coronavirus" target="_blank">COVID-19</a> and the markets remain volatile, the World Gold Council (WGC) said gold can provide liquidity with no credit risk and improve overall portfolio performance.</p>.<p>Gold is a clear complement to stocks, bonds and broad-based portfolios, as it is a hedge against systemic risk, currency depreciation and inflation, WGC said in a report ‘The relevance of gold as a strategic asset: Indian edition’.</p>.<p>It has historically improved portfolios' risk-adjusted returns, delivered positive returns and provided liquidity to meet liabilities in times of market stress, it noted.</p>.<p>“Today, gold is more relevant than ever before for the Indian investors. In such times of uncertainties and global market turmoil, gold possesses the ability to significantly improve risk-adjusted returns of portfolios across various levels of risk and act as a hedge against inflation and our data confirms this,” WGC Managing Director, India, Somasundaram PR said.</p>.<p>A well-diversified portfolio with gold will also tend to avoid panic reaction to market movements, and in a way, act against exacerbating the volatility, he opined.</p>.<p>“The average annual return of gold of 10 per cent since 1981, has outpaced the Indian consumer price index (CPI) that averaged over the period at 7.35 per cent.</p>.<p>“Gold also protects investors against extreme inflation. Gold's unique attributes as a scarce, highly liquid and un-correlated asset highlight that it can act as a genuine diversifier over the long term,” he said.</p>.<p>In India, gold's dual position as an investment and for adornment has allowed it to deliver average returns of approximately 9 per cent over the past 10 years, comparable to stocks and bonds and commodities, he said.</p>.<p>“Over the long term, therefore, gold has not just preserved capital, but helped it grow,” he added.</p>.<p>Perceptions of gold have changed substantially over the past two decades, reflecting increased wealth in the east and a growing appreciation of gold's role within an institutional investment portfolio worldwide, the report said.</p>.<p>Gold's traditional role as a safe-haven asset means it can demonstrate its qualities during times of high risk, however, its dual appeal as an investment and a consumer good means it can generate positive returns in good times too, it added.</p>