Risk can be greatly reduced by concentrating on only a few holdings.
Commodities add further diversification benefits to a portfolio. Gold, for example has a correlation of just 0.09 with the FTSE 100. Over long periods of time the CFA Institute has found that portfolios containing a significant exposure to precious metals experience higher average annual returns whilst exhibiting lower levels of volatility.
Our current investment selection includes:
Exposure is obtained by purchasing exchange traded funds that are listed on the London Stock Exchange, which hold the physical allocated metal under trust in a vault at HSBC and have very low management fees.