Promo risk diversification publication final
G Goolldd’’ss R Roollee W Wiitthhiinn aa P Poorrttffoolliioo Gold’s Performance in a Portfolio
Moving from a portfolio consisting of 100 per cent equity to one consisting of 75 per cent equity and 25 per cent gold increases returns while significantly decreasing risk. This is a result of the negative correlation between the annualised return from investing in gold and the annualised return from investing in the cumulative return Dow Jones equity index. – Stephen Harmston, World Gold Council The chart above does not take into account the rapid gold price rises of the last three years, using only data up until 1996.
Written during the stock market boom in 1998 by Stephen Harmston, World Gold Council: “In a period of a long bull run in equities, with low inflation and relative stability in foreign exchange markets, it is tempting for investors to expect continual high rates of return on investments. It sometimes takes a period of falling stock prices and market turmoil to focus the mind on the fact that it may be important to invest part of one’s portfolio in an asset that will, at least, hold its value.” “History suggests, and the global economic crises and uncertainties experienced in the past couple of years add force to the suggestion, that over the long run periods of economic turbulence are inescapable.”
““G Goolldd rreessppoonnddss w whheenn yyoouu nneeeedd iitt m moosstt””
KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
G Goolldd’’ss R Roollee W Wiitthhiinn aa P Poorrttffoolliioo You’re An Investor Not a Geo-Political Analyst A globalised world enables everything to becomes nearer and faster. Unfortunately, this is also the case with political conflict. In a macro environment, how aware are you of the geo-political conflicts and potential conflicts circling today? Do you have any safe-haven investments? How prepared is your investment portfolio for any of these? Iran Producing Nuclear Weapons The US is "conducting secret reconnaissance missions inside Iran since at least last summer" to identify and isolate at least three dozen targets in Iran "that could be destroyed by precision strikes and short-term commando raids." – Seymour Hersch (Top US investigative journalist) "Clearly, if I was the leader of Israel and I'd listened to some of the statements by the Iranian ayatollahs that regarded the security of my country, I'd be concerned about Iran having a nuclear weapon as well. And in that Israel is our ally, and in that we've made a very strong commitment to support Israel, we will support Israel if her security is threatened." – President Bush 17/02/05 "We will counter any stupid action by Israel and its master with firmness and in an astonishing way". - Brigadier-General Muhammad Ali Jafari (Commander in the Iranian Revolutionary Guards) "Iran and Syria heightened tension across the Middle East and directly confronted the Bush administration yesterday by declaring they had formed a mutual self-defence pact to confront the "threats" now facing them" – Guardian Newspaper 17/02/05
Further Conflict in the Middle East - Lebanon "The repercussions of the assassination (of prime minister Rafiq Hariri) could be dangerous if the Lebanese street does not stay united." - Hossam Zaki (Arab League spokesman)
Iraq Has Not Gone Away "The Iraq conflict, while not a cause of extremism, has become a cause for extremists. Those jihadists who survive will leave Iraq experienced in and focused on acts of urban terrorism. They represent a potential pool of contacts to build transnational terrorist cells, groups and networks in Saudi Arabia, Jordan and other countries" – CIA Director Porter Goss
Saudi Arabia is Not Immune Attacks on oil infrastructure - "You have motive and opportunity, so you're seeing more of this," said Anne Korin, director of policy and strategic planning for the Rockville-based Institute for the Analysis of Global Security, which tracks attacks on oil targets. "It's a very effective strategy on their part. . . . Oil is really a very target-rich area."
““G Goolldd iiss aa ssaaffee hhaavveenn iinn ttiim meess ooff iinnssttaabbiilliittyy””
KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
Threat of Al-Qaeda "It may be only a matter of time before al Qaeda or other groups attempt to use chemical, biological, radiological or nuclear weapons. We must focus on that." - CIA Director Porter Goss 17/02/05 "Their intent to attack us at home remains -- and their resolve to destroy America has never faltered." FBI Director Robert Mueller 17/02/05 "Their capture alone (Osama bin Laden and Ayman al-Zawahiri) would not be enough to eliminate the terror threat to the U.S." - CIA Director Porter Goss 17/02/05
Revolution and Instability in the Former USSR "Demonstrators in Krgyzstan are taking their cue from the upheaval in Ukraine." - Times Newspaper 19/02/05 Analysts are "predicting a series of copycat ‘revolutions’ in Kyrgyzstan, Moldova, Armenia and, possibly, Kazakhstan that will dash for good Mr Putin’s aspirations." – Times Newspaper 19/02/05
Taiwan Straits "Mainland China's continuous military build-up and modernization could tilt the strategic balance across the Taiwan Strait and also threaten U.S. forces." "If Beijing decides that Taiwan is taking steps towards permanent separation that exceeds Beijing's tolerance, we assess China is prepared to respond with varying levels of force." - CIA Director Porter Goss
North Korea "U.S. intelligence agencies and government scientists have come up with strong evidence that North Korea sold processed uranium to Libya." – AP (Washington) 03/02/05 "We have wanted the six-party talks but we are compelled to suspend our participation in the talks for an indefinite period till we have recognized that there is justification for us to attend the talks and there are ample conditions and atmosphere to expect positive results from the talks." – North Korean Foreign Ministry on leaving nuclear disarmament talks 10/02/05
Gold is a safe haven in times of instability, always being a secure refuge in unsettled times. Let gold follow the geo-political instability for you.
““G Goolldd ssttiillll sshhiinneess w whheenn eevveerryytthhiinngg eellssee ffaallllss aappaarrtt”” KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
G Goolldd’’ss R Roollee W Wiitthhiinn aa P Poorrttffoolliioo Historical Ratio
The chart displays the ratio of the Dow Jones Industrial Average to an ounce of gold since 1895. Peaks have been observed in the stock market booms of 1928, 1965 and 1999. Troughs have been observed around the ratio level 2.5 in 1930 and 1980. The ratio has since stabilized, but is still above its historical level. If this ratio performs as in the past, gold will rise faster than the Dow Jones Industrial Average to return to historical levels.
““G Goolldd ssttiillll sshhiinneess w whheenn eevveerryytthhiinngg eellssee ffaallllss aappaarrtt”” KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
Moving from a portfolio consisting of 100 per cent equity to one consisting of 75 per cent equity and 25 per cent gold increases returns while significantly decreasing risk. This is a result of the negative correlation between the annualised return from investing in gold and the annualised return from investing in the cumulative return Dow Jones equity index. – Stephen Harmston, World Gold Council The chart above does not take into account the rapid gold price rises of the last three years, using only data up until 1996.
Written during the stock market boom in 1998 by Stephen Harmston, World Gold Council: “In a period of a long bull run in equities, with low inflation and relative stability in foreign exchange markets, it is tempting for investors to expect continual high rates of return on investments. It sometimes takes a period of falling stock prices and market turmoil to focus the mind on the fact that it may be important to invest part of one’s portfolio in an asset that will, at least, hold its value.” “History suggests, and the global economic crises and uncertainties experienced in the past couple of years add force to the suggestion, that over the long run periods of economic turbulence are inescapable.”
““G Goolldd rreessppoonnddss w whheenn yyoouu nneeeedd iitt m moosstt””
KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
G Goolldd’’ss R Roollee W Wiitthhiinn aa P Poorrttffoolliioo You’re An Investor Not a Geo-Political Analyst A globalised world enables everything to becomes nearer and faster. Unfortunately, this is also the case with political conflict. In a macro environment, how aware are you of the geo-political conflicts and potential conflicts circling today? Do you have any safe-haven investments? How prepared is your investment portfolio for any of these? Iran Producing Nuclear Weapons The US is "conducting secret reconnaissance missions inside Iran since at least last summer" to identify and isolate at least three dozen targets in Iran "that could be destroyed by precision strikes and short-term commando raids." – Seymour Hersch (Top US investigative journalist) "Clearly, if I was the leader of Israel and I'd listened to some of the statements by the Iranian ayatollahs that regarded the security of my country, I'd be concerned about Iran having a nuclear weapon as well. And in that Israel is our ally, and in that we've made a very strong commitment to support Israel, we will support Israel if her security is threatened." – President Bush 17/02/05 "We will counter any stupid action by Israel and its master with firmness and in an astonishing way". - Brigadier-General Muhammad Ali Jafari (Commander in the Iranian Revolutionary Guards) "Iran and Syria heightened tension across the Middle East and directly confronted the Bush administration yesterday by declaring they had formed a mutual self-defence pact to confront the "threats" now facing them" – Guardian Newspaper 17/02/05
Further Conflict in the Middle East - Lebanon "The repercussions of the assassination (of prime minister Rafiq Hariri) could be dangerous if the Lebanese street does not stay united." - Hossam Zaki (Arab League spokesman)
Iraq Has Not Gone Away "The Iraq conflict, while not a cause of extremism, has become a cause for extremists. Those jihadists who survive will leave Iraq experienced in and focused on acts of urban terrorism. They represent a potential pool of contacts to build transnational terrorist cells, groups and networks in Saudi Arabia, Jordan and other countries" – CIA Director Porter Goss
Saudi Arabia is Not Immune Attacks on oil infrastructure - "You have motive and opportunity, so you're seeing more of this," said Anne Korin, director of policy and strategic planning for the Rockville-based Institute for the Analysis of Global Security, which tracks attacks on oil targets. "It's a very effective strategy on their part. . . . Oil is really a very target-rich area."
““G Goolldd iiss aa ssaaffee hhaavveenn iinn ttiim meess ooff iinnssttaabbiilliittyy””
KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
Threat of Al-Qaeda "It may be only a matter of time before al Qaeda or other groups attempt to use chemical, biological, radiological or nuclear weapons. We must focus on that." - CIA Director Porter Goss 17/02/05 "Their intent to attack us at home remains -- and their resolve to destroy America has never faltered." FBI Director Robert Mueller 17/02/05 "Their capture alone (Osama bin Laden and Ayman al-Zawahiri) would not be enough to eliminate the terror threat to the U.S." - CIA Director Porter Goss 17/02/05
Revolution and Instability in the Former USSR "Demonstrators in Krgyzstan are taking their cue from the upheaval in Ukraine." - Times Newspaper 19/02/05 Analysts are "predicting a series of copycat ‘revolutions’ in Kyrgyzstan, Moldova, Armenia and, possibly, Kazakhstan that will dash for good Mr Putin’s aspirations." – Times Newspaper 19/02/05
Taiwan Straits "Mainland China's continuous military build-up and modernization could tilt the strategic balance across the Taiwan Strait and also threaten U.S. forces." "If Beijing decides that Taiwan is taking steps towards permanent separation that exceeds Beijing's tolerance, we assess China is prepared to respond with varying levels of force." - CIA Director Porter Goss
North Korea "U.S. intelligence agencies and government scientists have come up with strong evidence that North Korea sold processed uranium to Libya." – AP (Washington) 03/02/05 "We have wanted the six-party talks but we are compelled to suspend our participation in the talks for an indefinite period till we have recognized that there is justification for us to attend the talks and there are ample conditions and atmosphere to expect positive results from the talks." – North Korean Foreign Ministry on leaving nuclear disarmament talks 10/02/05
Gold is a safe haven in times of instability, always being a secure refuge in unsettled times. Let gold follow the geo-political instability for you.
““G Goolldd ssttiillll sshhiinneess w whheenn eevveerryytthhiinngg eellssee ffaallllss aappaarrtt”” KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
G Goolldd’’ss R Roollee W Wiitthhiinn aa P Poorrttffoolliioo Historical Ratio
The chart displays the ratio of the Dow Jones Industrial Average to an ounce of gold since 1895. Peaks have been observed in the stock market booms of 1928, 1965 and 1999. Troughs have been observed around the ratio level 2.5 in 1930 and 1980. The ratio has since stabilized, but is still above its historical level. If this ratio performs as in the past, gold will rise faster than the Dow Jones Industrial Average to return to historical levels.
““G Goolldd ssttiillll sshhiinneess w whheenn eevveerryytthhiinngg eellssee ffaallllss aappaarrtt”” KK Bullion does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. Before investing, you should seek independent financial advice.
