@article {Mike94, author = {McGlone Mike}, title = {The Benefits of a Precious-Metals Basket}, volume = {5}, number = {3}, pages = {94--97}, year = {2014}, doi = {10.3905/jii.2014.5.3.094}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Precious metals have outperformed broad commodities. A precious-metals basket presents a good alternative to holding a broad-based commodity benchmark. The precious-metals basket has a history of outperforming the Bloomberg Commodity Index* and S\&P GSCI with similar volatility but lower correlation to the S\&P 500. Due to low storage costs, there are virtually no contango and backwardation issues with precious metals. Collectively, precious metals offer investors an opportunity to invest in hard assets that are likely to see increasing long-term demand in the current environment of high and rising government debt burdens, loose monetary policy, and political uncertainty. However, each metal has unique characteristics that offer different risk-return profiles for investors and will likely perform differently depending on the macro environment and micro fundamentals. Combining precious metals in a basket can offer unique and attractive portfolio diversification augmentation.TOPICS: Commodities, volatility measures, wealth management}, issn = {2154-7238}, URL = {https://jii.pm-research.com/content/5/3/94}, eprint = {https://jii.pm-research.com/content/5/3/94.full.pdf}, journal = {The Journal of Beta Investment Strategies} }