Gold: A Consistent Performer Across Currencies
A Safe Haven Asset
Gold has long been regarded as a safe haven asset, offering protection against market volatility and inflation. This infographic highlights the consistent performance of gold across various currencies over the past 24 years.
Strong Returns in Multiple Currencies
In U.S. dollar terms, gold has achieved a compound annual growth rate (CAGR) of 9.2%. However, the returns have been even more impressive in other currencies. For example, gold has delivered a CAGR of 10% in British pounds, 10.8% in Japanese yen, and 12.1% in Indian rupees.
A Hedge Against Economic Shocks
Gold’s value tends to rise during times of economic uncertainty. This was evident in 2008 and 2020, when gold prices surged by 30% and 28%, respectively. These gains provide a valuable safety net for investors during turbulent times.
A Consistent Performer
Gold’s performance has been remarkably consistent across different currencies. Even in economies with low or negative interest rates, such as Japan, gold has delivered strong returns. This demonstrates the versatility of gold as an investment asset.
A Valuable Addition to Your Portfolio
Given its consistent performance and ability to protect against market volatility, gold can be a valuable addition to your investment portfolio. By allocating a portion of your assets to gold, you can diversify your holdings and reduce your overall risk.
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