When you're thinking you're doing your asset allocation, what is going to protect your real after tax returns. So you do you create that optimal mix. Gold is a very excellent diversifier of the portfolio.So if you were to look at just from the strategic asset allocation mix perspective, you would probably have something like as the optimal mix, something like 15% of your portfolio in gold because of the fact that if you didn't even have a tactical, because it is the one asset that does very well when the ty ...

Core Insights - Gold is identified as an excellent diversifier for investment portfolios, particularly in times when traditional assets may decline in value [1][2][4] - A recommended strategic asset allocation suggests holding approximately 15% of a portfolio in gold, as it tends to perform well when other credit-dependent assets falter [2][3] - The current low credit spreads indicate a shift away from government and private credit assets, favoring gold as a more reliable investment option [3][4] Strategic Asset Allocation - The optimal mix for asset allocation should include a significant portion of gold to protect real after-tax returns [1][2] - Gold serves as a hedge against the volatility of credit-dependent assets, which are prevalent in most investment portfolios [2][4] Market Conditions - The current market environment, characterized by low credit spreads, suggests that traditional credit assets may not provide adequate returns, reinforcing the case for gold [3][4] - The dependence of equities and other assets on credit conditions highlights the importance of diversifying with gold to mitigate risks associated with credit fluctuations [4]