RT Journal Article
SR Electronic
T1 Should Institutional Investors Own Gold?
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 19
OP 27
DO 10.3905/jii.2011.2.3.019
VO 2
IS 3
A1 Robert K. Shapiro
A1 Ric Thomas
YR 2011
UL https://pm-research.com/content/2/3/19.abstract
AB Institutional investors are not significant owners of gold. If gold effectively hedges inflation, then gold could merit consideration as a strategic allocation in a pension fund. This article evaluates gold’s ability to hedge inflation and monetary policy and tests whether gold should receive a strategic allocation in a pension fund. The findings show that gold is a better inflation hedging tool than other commodities and that, even at a low level of expected return, gold receives a positive strategic allocation in a diversified plan.TOPICS: Other real assets, pension funds, portfolio construction