Investors Should Have Some Gold in Portfolios: Deutsche Bank’s Nolting

The video discusses the forecast for gold prices, highlighting correlations with inflation and negative yields. It emphasizes the importance of owning gold in a portfolio due to low opportunity costs in a low-yield environment. Additionally, it addresses geopolitical risks, particularly in the Middle East, and their potential impact on asset classes, urging investors to consider these risks in 2020, an election year in the US.

What is one reason the gold price is not expected to rise significantly?

• Stable inflation expectations

• Rising storage costs

• Increased dividend yields

• High inflation expectations

How does a low-yield environment affect the opportunity cost of holding gold?

• It has no effect on the opportunity cost

• It makes gold less attractive

• It increases the opportunity cost

• It decreases the opportunity cost

Why is gold considered a good diversifier in a portfolio?

• It provides high dividends

• It is unaffected by market tensions

• It correlates with negative yields

• It offers stability during tensions

What recent event has highlighted the importance of geopolitical risk in 2020?

• A financial crisis in Europe

• An incident in the Middle East

• A natural disaster in Asia

• A trade agreement in North America

What is a key consideration for investors in 2020 according to the transcript?

• Investing only in domestic markets

• Ignoring geopolitical risks

• Balancing politics and policy

• Focusing solely on policy changes