Gold has been a reliable investment for thousands of years, offering protection against inflation. Unlike euros and other currencies, gold is truly scarce. Its value often increases during periods of uncertainty in financial markets, primarily because gold is not a part of the current financial system. Serving as market insurance, it provides a hedge against market volatility, thus reducing the overall risk of an investment portfolio. This characteristic is particularly noticeable when gold is combined with stocks: in years when stocks struggle, gold often rises in value.
The Blokland Smart Multi-Asset Fund invests in physical gold that is fully insured and securely stored in Switzerland. In the event of a crisis, the fund ensures immediate access to its physical gold holdings
An important characteristic of gold is its ability to provide diversification within an investment portfolio, which leads to reduced portfolio risk.
To illustrate this, the chart displays the returns on gold and stocks during key crisis years. It distinguishes between the ‘Dot Com’ Bubble, the ‘Great Financial Crisis,’ and the recent ‘Inflation Crisis.’ During these periods, while stock prices declined significantly, the price of gold increased. By combining gold and stocks, investors can enhance both the performance and resilience of their portfolios.
Past performance is no guarantee for future results.