PRECIOUS METALS A return to glory for gold, which, with uncertainty and the decline in real interest rates (that is, net of inflation), is reappearing in investors' portfolios. In recent days, the yellow metal has approached $2,000, close to the historic peak reached during the pandemic. Many advisors recommend always keeping a share in your portfolio, because it cushions equity declines and the erosion of coupons due to the rising cost of living. "In a balanced portfolio with 30% equities and 70% bonds," explains independent financial advisor Marco Galli, "I suggest 5% in gold, which increases in proportion to the aggressiveness of the allocation; even up to 10% if equities account for 60% of total financial assets. I do not consider investing in gold from a speculative perspective, but rather due to the magnitude of the tail risk to be covered. In periods of apparent calm, like the one before the pandemic, gold was a cost in the portfolio, a bit like an insurance policy, while in times of marked risk aversion it acts as a safe haven asset."
Marzia Redaelli