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Is gold still a diversifier?

The yellow metal's surge poses questions about its future safe haven qualities
Is gold still a diversifier?Published on November 6, 2024

It has been easy enough to concoct a bull case for gold in recent times. Geopolitical tensions are running high, as are concerns about the value of traditional currencies, and the opportunity cost of holding a non-yielding asset is lessening as interest rates ease off. 

All this helps to explain what has been going on with the gold price, which hit a fresh record high in October. It sat at £2,111 at the time of writing, well above its level 12 months ago, meaning investors have reaped the rewards whether they hold it directly or through funds.

The Invesco Physical Gold ETC (SGLD) that sits in our Top 50 ETFs list has made a return of more than 30 per cent so far in 2024, with funds that buy gold mining equities such as Ruffer Gold (GB00B8510Q93) making even more substantial gains.

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