BlackRock's Koesterich Explains Why He Invests in Gold

The video discusses the role of gold in a diversified portfolio, highlighting its function as a hedge against volatility and its relationship with real interest rates. It questions the effectiveness of a small gold allocation and compares gold's performance with Treasury yields, considering the impact of Federal Reserve actions.

Explain the role of gold in a portfolio and why it is considered a hedge against certain risks.

Discuss the implications of low volatility in the market on the allocation of gold in an investment portfolio.

What factors influence the performance of gold in relation to real interest rates?

How does the opportunity cost of holding gold change in different interest rate environments?

What are the potential risks of relying on gold as an insurance policy in a rising inflation environment?