AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Using Commodities and Gold and Inflation in a Portfolio
Gold and commodities, they almost operate like inflation insurance in a portfolio. So for instance, what is an insurance in a financial planning aspect of a portfolio? Well, if you buy a 20-year term life insurance policy, you've bought a long-duration asset that has a highly asymmetric short-term payoff. And so on this left tail of the bell curve, you've got this absolute certainty in nominal terms. And on the right tail of the curve, you have insurance-type instruments.