PT  - JOURNAL ARTICLE
AU  - Robert K. Shapiro
AU  - Ric Thomas
TI  - Should Institutional Investors Own Gold?
AID  - 10.3905/jii.2011.2.3.019
DP  - 2011 Nov 30
TA  - The Journal of Index Investing
PG  - 19--27
VI  - 2
IP  - 3
4099  - https://pm-research.com/content/2/3/19.short
4100  - https://pm-research.com/content/2/3/19.full
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