Gold: What makes it a strategic asset? – WGC

The World Gold Council (WGC) is out with its latest report, explaining the relevance of gold as a strategic asset.

Key takeaways

“COVID-19 significantly increased uncertainty by compounding existing risks and creating new ones. The rollout of new vaccines at the end of last year fuelled optimism that the worst was over.”

“Yet the pandemic and the ensuing policy response from governments will likely have unintended consequences for, and create structural changes to, asset allocation strategies.” 

“Global central banks have effectively taken interest rates to zero, driving nearly all sovereign debt to negative real yields.”

“Additionally, many countries have made it clear they will continue to enact sizeable fiscal policy measures to tackle the economic impact of COVID-19, along with expanding budget deficits and balance sheets.” 

“We believe these actions - in combination with the current environment have made gold increasingly relevant as a strategic asset.”

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