Seeking Alpha
Bonds, dividend investing, ETF investing
Profile| Send Message|
( followers)  

Gold is considered as a “safe haven” asset. This implies that the yellow metal’s performance should be inversely related to risky assets such as stocks and commodities. However, the expected divergence is decreasing in recent years and gold’s correlation with stocks and commodities is reaching historic highs, according to a research report by Germany-based Commerzbank (OTCPK:CRZBY). This is another reason for investors to hold diversified portfolio and not overweight one class of asset over another.

Click to enlarge:

Source: CityWire Money, UK

Related ETFs:

SPDR Gold Shares ETF (NYSEARCA:GLD)
iShares COMEX Gold Trust (NYSEARCA:IAU)

Disclosure: No positions

Source: Gold's Correlation With Commodities And Stocks