DGLD - The Role Of Gold In Your Portfolio

• Gold plays a critical role in preserving wealth and should be considered in a context beyond a securities portfolio.
• The long-history of gold and correlation to real interest rates make gold a sound proxy on the price of money.
• Gold also serves a separate role in a diversified securities portfolio, outpacing risk assets during large declines in real interest rates.
• Investors should consider "linking" or "backing" a percentage of net wealth in gold, in addition to the contributions the yellow metal can make to a diversified securities portfolio.
• Long-term economic trends support gold in a securities portfolio with the potential roadblock of the zero-bound. Short-term trends favor higher real interest rates, which can weigh on the price of gold.

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