Gold sits at the intersection of real yields, inflation expectations, geopolitics and investor confidence. Its role changes with the environment.
More than an inflation hedge
Gold’s performance is influenced by real interest rates, currency trends, market stress and investor positioning. Inflation alone is an incomplete explanation.
A portfolio role
Gold may contribute diversification because its drivers differ from those of operating businesses and income-producing assets, but that benefit is not constant.
Risks remain real
Gold produces no cash flow, can be volatile and may underperform for extended periods. Vehicle selection, custody and liquidity all matter.
Use objectives, not headlines
Any allocation should begin with the family’s objectives, time horizon and total balance sheet—not a recent price move or a single macroeconomic narrative.