Regional Insights

Interest rate volatility in Australia has risen sharply recently, pushing up a traditional 60/40 portfolio’s risk. And the elevated inflationary risk – despite recent cooling signs – has weakened bonds’ role as a traditional portfolio risk diversifier. We believe gold’s consistent low correlation with Australian equities and attractive return prospect will benefit local portfolios.

In anticipation of the upcoming US presidential election, our report examines how gold has historically performed during previous elections, the impact of geopolitical uncertainty on its value, and the implications for physical gold demand. Given the US's significant influence on the global economy, understanding these factors is crucial for investors.

Rates and inflation may stay elevated for longer, posing risks to investors' portfolios. Our analysis shows that gold could help improve portfolio performances as a consistent and effective risk diversifier.

While gold investments have been gaining popularity among Japanese households, both life, and property and casualty (P&C) insurers have made limited gold investments, despite the sheer size of the Japanese insurance market in terms of premiums and assets.

Over two thirds (69%) of Australians with a superannuation fund (“Super”) feel optimistic about their future, though almost half (44%) acknowledge that they might need to make sacrifices to meet their desired retirement lifestyle. These were some of the findings of a survey commissioned by World Gold Council (WGC) to gain greater insight of Australians’ approach to, understanding of, and sentiment towards, financial planning for retirement.

Upbeat growth prospects for the global economy, led by the US are cause for optimism in the financial markets. However, challenges and risks prevail. As such, we believe that investors should look closely at the benefits gold can bring to their portfolios.

In 2023, China’s wholesale gold demand improved and the PBoC’s gold reserves kept rising. Meanwhile, the local gold price premium saw a sizable increase.

We surveyed 1,000 people in the UK to learn about retirement planning and, importantly, if gold could play a greater role in UK pensions. The results point towards a clear growth opportunity for gold ownership in the pension space.