Gold vs Bonds in an Investment Portfolio In this video we are addressing whether gold may replace bonds as a defensive investment class in a multi-asset investment portfolio. https://www.illuminatisilver.com/sign-up-today/ Gold vs Dow Jones - A Brief Assessment https://www.youtube.com/watch?v=407of0Hyizc Is Gold an Effective Hedge Against Inflation? https://www.youtube.com/watch?v=AXVBVz9SLkA&t=1s Today is Thursday 24th October 2019 and so far this week we have been focussing much more on gold whereas last week it was on silver. Today we are going to look at gold vs bonds in an investment portfolio and look at whether bonds will now serve as the obvious candidate for those looking for defensive investments when there is much peril around. It is no secret that in recent years, and as we have shown in recent previous videos, that those who have invested in stocks or equities, since the 2008 and 2009 economic collapse have done extremely well in general. Also, those investing in Government Bonds have also done well considering they are generally regarded as a defensive asset – secure but unexciting. Gold and silver have done well until 2011 and between then and 2016 have performed abysmally. With Gold peaking just below $1900 in September 2011 and Silver at $49 in April 2011 when compared to their current price of gold at $1491 and silver at $17.57 they have lost since those peaks, 21% and 64% respectively, despite considerable rises over the past couple of years. The question on fund managers lips today is are things going to change in the precious metal space and especially for gold. It is often cited that gold bears no yield and therefore is uninteresting to investment managers who are under continual pressure to produce results not just year after year but quarter after quarter, for fear of either losing their own jobs, or the funds which they are managing. From a defensive asset point of view, they have tended to prefer bonds, usually but not exclusively Government bonds or often called treasuries. They are safe in that they are backed by the Government and they have, up until now offered, not exciting but generally inflation beating yields. But that time is now over – we have seen yields fall significantly around the world, and the prediction is that they are moving lower with something like $15 trillion worth currently offering negative interest rates and this will only increase. There is no doubt that investment managers and advisers are now considering gold, and to a lesser extent silver as a viable option. If there is one message one can derive from this, and we have to bear in mind that not every asset manager or hedge fund manager or investment adviser is in total agreement – but one can now draw the conclusion that moving forward, despite the lack of yield, gold is now at last becoming a serious consideration in being included in a multi-asset portfolio – primarily for defensive reasons, but even if gold replaces a small percentage of those monies allocated to bonds previously, we shall indeed see an uplift in prices from current levels. Will his happen overnight – no – funds and managers take time to move such assets and frankly to be persuaded they are doing the right thing. No-one wants to be managing an underperforming fund, but do not be surprised that over the coming months and certainly the next few years, we shall see gold gaining in prominence. Not overnight $10,000 prices but gradual and slow but steady uplifts with pullbacks and consolidations, but until the world manages, if it does, to get out of economic depression, stagnation or recession, then we can expect gold’s lustre to shine for many years to come. Thank you for listening. Do, share your thoughts and if you haven’t watched either our gold inflation hedge or gold vs Dow videos, then please do so and we have placed links in the description box below. Finally, please also do not forget to subscribe to this channel if you haven’t already done so and pop over to illuminatisilver.com and join our inner sanctum News Theme 2 by Audionautix is licensed under a Creative Commons Attribution license (https://creativecommons.org/licenses/by/4.0/) Artist: http://audionautix.com/