TORONTO, June 30 /CNW/ – A study prepared for Bullion Marketing Services Inc. by Ibbotson Associates has determined that the addition of precious
metals bullion to a portfolio of traditional asset classes enhanced diversification and improved the reward-to-risk ratio in conservative, moderate and aggressive asset allocations.
Since an investment in commodity-related stocks does not provide a direct or pure asset class exposure to commodities, researchers at Ibbotson analyzed the role of a direct, physical investment in an equally-weighted portfolio or composite of gold, silver and platinum bullion. The study, entitled “Portfolio Diversification with Gold, Silver and Platinum,” covered a period of 33 years from February 1971 to December 2004. Over that time period, researchers found that precious metals had a negative correlation with traditional asset classes and a positive correlation with inflation.
“The negative correlation of precious metals bullion with traditional asset classes potentially makes it a strong diversifier in a traditional
portfolio,” said Nick Barisheff, president of Bullion Marketing Services Inc., the distributor of The Millennium BullionFund. “The asset class’ positive correlation with inflation can also help to insulate a portfolio from the deteriorating impact of inflation.”
The Millennium BullionFund(TM) is Canada’s first and only open-end mutual fund trust that invests directly in gold, silver and platinum bullion and qualifies for all registered plans.
For further information: or to receive a copy of the executive summary of the report contact: precious metals bullion Marketing Services Inc., Toll-Free 1-888-474-1001 x 201, E-mail info@bmsinc.ca, Website www.bmsinc.ca
Photo credit: Xuan Che via VisualHunt / CC BY
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