The Relevance Of Gold For Australian Self-Managed Super Funds

Summary

• Gold, in Australian dollars, delivered positive returns in 2022 and this has continued so far in 2023.
• Markets may be vulnerable to negative shocks for the remainder of the year - most notably stagflation.
• Examining past data we find that not only can gold remain an effective equity-risk diversifier when inflation is elevated, it also posts superior performance in a stagflationary environment.

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Gold, in Australian dollars (AUD), delivered positive returns in 2022 and this has continued so far in 2023. It has attracted attention: not only have global central banks continued to buy gold, but Australia’s sovereign wealth fund has also added gold