Indian Streams Research Journal

Volume : IV, Issue : III, April - 2014

GOLD AS AN INVESTMENT VEHICLE

Arti Chandani, Arzoo Bista Krittika Magotra Shruti Mahavarthayajula

By : Laxmi Book Publication

Abstract :

Gold has been used extensively for savings, investments and consumption since ages; however the importance of the gold as an investment instruments has been much talked in the recent times. This research paper intends to find various applications of gold portfolios as an alternate asset class: the benefits of including gold to an investment portfolio have been analyzed. The results indicate that gold has performed significantly better than other assets like debt and equity in both emerging and US markets. It was noted that addition of gold to portfolios helped reduce the volatility and increase overall returns during the period 2009-12. For example, in 2008, when the U.S. equity market plunged to 36.99%, gold in fact showed returns of 5.8%. It is also observed that the inverse correlation exists between the dollar index and the gold prices helped reduce the portfolio risk as a result of diversification.

Keywords :

• Gold
• alternate investment
• dollar index
• risk-return
• Gold
• alternate investment
• dollar index
• risk-return
• Gold
• alternate investment
• dollar index
• risk-return

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References :

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222. Journal. May/June.
223. Marlin, B. and T . Louis. 1996. Bayes and Empirical Bayes Methods for Data Analysis. Chapman and Hall: Boca Raton.
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226. Journal. May/June.
227. Marlin, B. and T . Louis. 1996. Bayes and Empirical Bayes Methods for Data Analysis. Chapman and Hall: Boca Raton.
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229. Brinson, G. B., Singer and G. Beebower. 1991. “Determinants of Portfolio Performance II:An Update” Financial Analysts
230. Jaffe, J. F . (1989). Gold and gold stocks as investments for institutional portfolios. Financial Analysts Journal, 53-59.

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