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Allocators see gold as long-term alternative to traditional bonds

Richard Newell
By swapping government bonds for bullion, pension funds, sovereign wealth funds and family offices are hoping to protect their portfolios against falling currencies.
Allocators see gold as long-term alternative to traditional bonds
Key Points
  • Investors are shifting capital out of government bonds into physical gold, treating it as a permanent strategic asset. 
  • Central bank purchases too have doubled over the past four years, driving prices past $5,000 per ounce as gold overtook US Treasuries as the leading reserve asset.
  • Some institutions prefer indirect exposure through mining stocks. 

As government bonds lose their traditional defensive edge, global institutional investors are overhauling their long-term strategies in favour of real assets, increasingly moving capital into gold, which they now see as a core portfolio pillar.

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