John Maynard Keynes called it a barbarous relic. Warren Buffett said it has no utility. It’s a curious yellow metal that miners dig out of the ground only to melt down and bury again in carefully guarded vaults. So why invest in gold? As Ray Dalio once said, “If you don’t own gold, you know neither history nor economics.”
This article examines the fundamental and technical reasons why investors should hold gold now. Furthermore, taking Sharpe ratio analysis and macroeconomic trends into account, I conclude that a 10% allocation to gold provides the most risk-adjusted