Superannuation and Gold
The right allocation of gold into an institutional or self-managed super can help:
IMPROVE
portfolio risk adjusted returns
DIVERSIFY
to protect investment objectives
PROVIDE
liquidity to meet liabilities in times of market stress
Gold’s role in Australian portfolios amidst rising interest rate volatility
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.
Australian rates and inflation: higher for longer?
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.
The Super Retirement Approach
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.
Our latest insights
Latest data
Inv. Upd. Australian Investors: Chart 6
Gold vs Australian CPI levels*
Sources: Bloomberg, ICE Benchmark Administration, World Gold Council; Disclaimer
* Note: Based on LBMA Gold Price PM in AUD and Australian CPI between 2002 and 2022.
Gold has outpaced Australia’s Consumer Price Index (CPI) over the past 20 years.
Sources: Bloomberg, ICE Benchmark Administration, World Gold Council; Disclaimer
* Note: Based on LBMA Gold Price PM in AUD and Australian CPI between 2002 and 2022.
Australia report 2023: Chart 1
Annual returns on major assets in Australian dollars (%)*
Sources: Bloomberg, World Gold Council; Disclaimer
*As of 31 December 2022. 2023 Y-t-d refers to 30 June 2023. Based on LBMA Gold Price PM, AusBond Bank Bill Index, AusBond 0+ Composite Index, Bloomberg Barclay Global Agg, ASX300 Index, MSCI World Index, ASX300 A-REIT Index, FTSE EPRA/NAREIT Developed ex-Australia Index, FTSE Developed Core Infrastructure Index. All calculations are in AUD.
2022 and H1 2023 returns from major assets in Australian Dollars
Sources: Bloomberg, World Gold Council; Disclaimer
*As of 31 December 2022. 2023 Y-t-d refers to 30 June 2023. Based on LBMA Gold Price PM, AusBond Bank Bill Index, AusBond 0+ Composite Index, Bloomberg Barclay Global Agg, ASX300 Index, MSCI World Index, ASX300 A-REIT Index, FTSE EPRA/NAREIT Developed ex-Australia Index, FTSE Developed Core Infrastructure Index. All calculations are in AUD.
Superannuation Chart 1
Gold has been less volatile over the past decade than Australian REITs and on par with the ASX 200 and MSCI Australia
Sources: Bloomberg, CBOE, COMEX, World Gold Council; Disclaimer
Data as of 30 December, 2022
Superannuation Chart 2
Gold bought in AUD, has returned a compound annual growth rate (CAGR) of 11.13% over the past 5 years
Sources: Bloomberg, ICE Benchmark Administration, World Gold Council; Disclaimer
Data as of: 30 June, 2023
Get in touch
If you have any questions please get in touch.
Tools and dashboards
Returns, volatility, correlations and trading volumes for gold, bonds, equities and other major asset classes
