Based on my research, gold had an average annual returns of 10.61% between January 1971 to December 2019, which shows why having some amount of gold in ones' portfolio makes sense. Here's the stats: https://www.statista.com/statistics/1061434/gol...

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Honestly speaking, gold works best as part of a diversified portfolio, particularly when it is acting as a hedge against a falling stock market & inflation. Here's my 4 reasons to believe why we should all have gold a part of our investment portfolio:

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• Gold is also still one of the most traded assets in the world. There is active and strong demand.
• The gold market is one of the most liquid markets in the world, with roughly US$200bn traded on recognised exchanges everyday.
• Gold is a good hedge against investment risks; having gold in your portfolio can dampen out the volatility of your other investments.
• Unlike fiat currency and other assets, gold holds its value over time regardless of what goes on around it.

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You can find more insights from this article on why everyone should start investing in gold: https://bit.ly/case4gold

I do hold some gold. it provides a great store of value and in times when inflation or volatility runs high, it does serve as a hedge, protecting our portfolio. I think there is a place for gold in everyone's portfolio (even just 5%!)

My humble opinion:

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I think it largely depends on the investor's thesis about holding gold.

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As a like-for-like comparison with holding equities, holding gold sounds like a poor choice. In the words of legendary investor, Warren Buffett "It doesn't do anything but sit there and look at you". (Although Mr Buffett did dump his bank holdings and bought gold stocks sometime last year)

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Simply put, gold is non-productive as compared to companies and businesses that produce goods/services which delivers value.

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On the other hand, if your view on gold is more of a hedge against the international monetary debasement, and devaluing of purchasing power of fiat currencies, you'd understand why gold still has a place in every investor's portfolio.

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I do agree that increasingly, younger investors are looking at cryptocurrency - Bitcoin in particular, as "gold for the digital age" to replace the hedging role of gold in their portfolio.

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Thanks for the question.

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Cheers! :)

No, gold does not serve any meaningful purpose in the portfolio of a youngster (20s-30s).

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Gold price right now is basically the same as its price 10 years ago. Even bonds have better performance than gold.

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You don't invest to see your money not grow a single cent after a decade, do you?