Gold has been favored and fought over by humans for thousands of years. With scarce supply and unwavering demand, the unmistakable precious metal has remained central to our concept of money and the preservation of wealth. 

Despite the initial sell-off in the wake of the 2020 COVID-19 pandemic, if history is to be a guide then the precious metal is poised for significant growth given the immense increase in money supply by global reserve banks in an effort to buoy consumer demand. 

In our view, there are three overriding reasons to invest in gold now:

The IGP Fund will have a strategic asset allocation of 90% gold and 10% interest-bearing cash. The allocation will allow for a 5% corridor before rebalancing. Cash proceeds will be invested into our Margin Lending Fund. This allocation will aim to improve the risk-adjusted returns for investors over a pure gold exposure with reduced volatility. IGP aims to outperform gold through margin lending activities on the underlying assets, along with taking advantage of arbitrage opportunities between spot markets.

Many investors are drawn to the role of gold as a diversifier due to its low correlation to most conventional assets classes – and as a hedge against systemic risk and market turmoil. Beyond these diversification benefits, however, the asset has also been an excellent source of long-term returns as well.

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