World Gold Council Urges 2.5%-10% Gold Allocation as Most Portfolios Hold Under 1%
Updated
Updated · Kitco NEWS · Aug 18
World Gold Council Urges 2.5%-10% Gold Allocation as Most Portfolios Hold Under 1%
3 articles · Updated · Kitco NEWS · Aug 18
Summary
Most portfolios hold less than 1% gold exposure through broad commodity indices, and the World Gold Council says that understates gold’s strategic role and leaves investors underallocated.
US$373 billion in average daily trading in 2025, plus deep OTC, ETF and above-ground supply, makes gold structurally different from commodities whose index weights are tied mainly to futures liquidity or annual production.
Over the past 3, 5, 10 and 20 years, WGC says gold outperformed broad commodity indices and most sub-indices, while also showing lower volatility and little to no correlation with many assets.
In stress periods, that diversification strengthened: gold rose 8% in Q4 2018 as MSCI USA fell 14%, and gained 6% in Q1 2020 while commodities dropped 23%.
The council argues gold delivered positive returns across all four macro regimes it tracks, supporting its case that gold should sit alongside—not inside—a broad commodity allocation.