Gold's Timeless Value: Why a 10% Allocation Matters

Investors often overlook gold when building their portfolios, but allocating 10% of their investments to gold can be beneficial. This is because gold behaves differently from equities and fixed income in most situations.

When equity markets are under stress, gold tends to hold up or even gain value. Similarly, when bond yields rise sharply due to inflation worries, gold does well as it is seen as a hedge against currency depreciation.

By allocating 10% of their portfolio to gold, investors can reduce overall portfolio volatility and improve risk-adjusted returns. This is because gold price movements are not synchronized with other asset classes.