SSGA study shows financial advisors going for the gold

investmentnews.com:

There’s gold in them thar portfolios. And a new study expects there to be even more soon.

A report from State Street Global Advisors and the World Gold Council released this week showed 29 percent of financial advisors in North America plan to increase allocations to gold over the next 12 to 18 months, 62 percent plan to stand pat on their gold holdings and 9 percent believe they will lower the percentage of client assets invested in gold.

Gold is up over 12 percent thus far in 2024 and over 20 percent in the past 12 months.

“While interest rates are widely expected to be cut during the next 12 months, advisors’ allocations to gold have remained fairly consistent,” said George Milling-Stanley, chief gold strategist at State Street Global Advisors in a statement. “This suggests that a growing majority of advisors are using gold as a core asset for long-term investment horizons, which is where it shines in the context of a well-balanced, diversified portfolio.”

“The recent gold price rallies have piqued investor interest, and with good reason amidst today’s economic and geopolitical uncertainty,” said Joseph Cavatoni, senior market strategist at the World Gold Council. “Many investors and advisors alike used to look at specific factors, like interest rates and the dollar, in isolation when considering an allocation to gold. But as a global asset with a multitude of both strategic and tactical drivers that are supporting demand, a strong case can be made for gold in the year ahead.”

State Street Global Advisors and the World Gold Council conducted the survey of 400 financial advisors in North America with $100 million or more in total assets during the fourth quarter of 2023.

Elsewhere, the survey showed nearly 9 in 10