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The World Gold Council put out their "Gold as a Strategic Asset (2026)" report this week, and a few points are worth considering.

First, gold is not just portfolio “insurance.” Since the collapse of the gold standard in 1971, gold has compounded at roughly 9% annually, a return profile comparable to equities and stronger than bonds, while maintaining its role as a store of value through multiple inflationary and deflationary cycles. Not bad for something that allegedly “does nothing.”

Second, gold actually diversifies when diversification is needed most. During sharp equity selloffs, gold’s correlation to stocks tends to turn more negative, meaning it often holds up or rises precisely when other assets fall together. Many diversifiers look good on paper. Fewer show up during market stress.

Finally, scale matters. Gold trades roughly $360 billion per day, with liquidity comparable to major sovereign bond markets. Even during periods of financial stress, the market has historically remained deep and functional, making gold practical for institutional portfolios, not just theoretical.

Gold is not about predicting tops or timing entries. It is about quietly improving portfolio efficiency, reducing drawdowns, and owning something that behaves differently when it actually counts.

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