How has the perception of gold as an investment evolved in the context of protecting wealth?

The perception of gold has transitioned to being viewed more as a means of protecting wealth rather than a traditional investment.

In the context described, gold occupies about 2% of the overall investment portfolio and is considered more of a savings tool, safeguarding wealth against economic uncertainties.

• The rationale for gold ownership is anchored in its historical role as a stable asset, particularly when cash loses purchasing power due to inflation.
• Gold is posited as a hard asset that will maintain or even appreciate in buying power compared to cash over time.
• However, it is emphasized that gold does not generate cash flow or value by itself—its utility lies primarily in wealth preservation.

This redefining of gold's role reflects a growing trend among investors to view physical assets as crucial for economic security.

The investment landscape thus recognizes gold's potential as insurance against economic downturns, rather than a primary growth vehicle.