Gold fingered by Scot Life Int’l as portfolio booster

Taking on gold to diversify a portfolio can result in greater returns at the same level of risk, according to research on historical returns carried out by Scottish Life International (SLI).

And, while historical performance is not necessarily a guide to the future, SLI says adding gold to a diversified portfolio in the current environment makes good sense.

”A fully diversified portfolio across the four asset classes of equities, property, cash and commodities will fare better than those who linger in diversified portfolios, which remain geared to those asset classes trapped to a set of economies that are still irresponsibly living off borrowed money,” says Neil Lovatt, director of marketing development.

Examples of the latter include the US, where monetary and fiscal policies have pumped huge amounts of cash into the economy since late 2001.

Such borrowings must be paid off eventually, or as Lovatt puts it: “the day for payback seems inevitable”.