Uncertainty on the future of European financial system and not only raises the issue again in the gold spot placements European investors. And beyond. On the other hand, neither exaggerating the qualities of gold and sometimes does not gain any protection. Great gold producers have commissioned a professional study. What they found?
Investments in precious metal must obey main rules of portfolio diversification. And investment in gold will not protect against risk as proportional to the magnitude placement. Gold can be very risky, and demonstrated what the last months, when its price variation was measured in tens of percent.


So the optimal share of the largest gold was found, statistically, the most risky portfolios, according to a study of New Frontier Advisors (NFA), sponsored by the World Council of Gold (World Gold Council, WGC), an association corporate grouping companies that provide 60% of world gold production.


Optimal weight for the largest European investors risk appetite is up to 10%, according to statistics on the strategic allocation of resources for investment in gold in the last two decades - the report says NFA. No more, but less so.


The study found that the riskiest portfolios are those that have an exposure of up to 75% in shares, and the remainder in fixed income instruments, in which portion to make room and gold.


The small allocation of gold in the riskiest portfolios are 3%, even as the largest share of gold in a medium risk portfolio is 9.3%. A medium risk portfolio is one that divides half of the shares resources.


Finally, the least risky portfolios, not only 25% of resources allocated shares, have the lowest weights in gold. The largest share in this case is 5.4%. Details on different types of portfolio allocations are specified on page 17 of the study.


The smallest share of gold, 2.2 of the value portfolio was found to conservative investors. On the other hand, the statistical distribution of the 3% threshold given utmost importance.


The authors, who used statistical series in the last 25 years, states that the main criterion was not maximizing the return offered by Gold, but the protection that it offers to adverse developments in other assets and condition macroeconomic (inflation) . The study was made in euro, ECU or similar denominations.


It should be noted that the vast majority of purchases are not gold bars and bullion form specifically designed for investment purposes, but as jewelry. About 75% of purchases in the last 30 years the world was jewelry.



Gold Fever purchases for investment purposes and Romania included, the amount sold by the largest banks bidding, the Romanian Commercial Bank (BCR) and Piraeus Bank exceeding 1000 kilograms this year.



Report is required reading for details attached.