Gold remains the ultimate hedge against inflation and market volatility. As central banks continue unprecedented monetary expansion, savvy investors are turning to precious metals for portfolio stability and long-term wealth preservation

Gold proven by time. Powered by today.

Gold proven by time. Powered by today.

Despite the recent outperformance of equities, gold has generated strong annualized returns over the long run when compared to domestic and international equity markets.

• In a protracted high inflation environment, gold allocations have the potential to outperform other commodity allocations, while simultaneously offering additional downside protection in a low inflation environment.

• Gold can act as a significant diversifier, offering drawdown protection during periods of elevated systemic risk. Gold retains limited correlation with other asset classes during market drawdown events, while enjoying upside participation during periods of economic growth, resulting in a convex return profile.

• Gold offers reduced volatility as compared to other commodities, allowing gold allocations to potentially improve portfolio stability and risk-adjusted returns.

• The gold market has significant depth and breadth beyond what is indicated from its exchanged traded liquidity; gold makes up approximately 40.0% of total average daily over-the-counter open interest in all commodities.

Gold has historically done well during periods of interest rate decreases. In Oct-24, the bank of Canada has further enacted an interest rate cut of 50bps. Since the latest Federal Reserve rate cut, gold has been the secondbest performing asset, behind bitcoin.

• Purchases of spot gold by gold ETFs (such as GLD, GLDM, IAU,& others) has reversed following two years of outflows, leading to +$3.3Bn being added to Gold ETFs since the middle of Aug-24.

• Furthermore, the holdings of ETFs backed by physical gold only rise gradually following an interest rate cut. Specifically, gold ETF holdings increase gradually for approximately six months following a policy rate reduction.