Knight Frank Study reveals Gold Portfolio Allocations
What is the gold portfolio allocation of the rich and famous? How much gold do they own on average? We can find out from Knight Frank. The esteemed advisor to the world’s wealthy publishes an annual Wealth Report that includes a sneak peak into their portfolio allocations to various asset classes such as property, bonds, and stocks, and including their allocation to gold. We find some interesting insights in their reports that we can all learn from!
For the diligent, here are the links to the reports for 2019 and 2020
Wealth Report 2020 (link may change to the latest report if accessed after 2020)
Wealth Report for 2019
Current Allocation to Gold is 3%
The current allocation to gold at time of writing in Year 2020 is 3%. Roughly similar to their allocation in Year 2019. This is in keeping with the “markedly slower global economic growth and a challenging corporate business environment” as well as falling interest rates.
Expected Allocation to Gold is increasing
44% of respondents expected allocation to Gold to increase
46% of respondents expected to change to their gold allocations
Future Allocations to Gold range from 15 - 20%
The Knight Frank Wealth Report for the prior year in 2019 shows that the world’s wealthy intended to increase their allocations. The 2020 report shows that the wealthy are still in the process of pivoting to their new allocations. The expected changes reported in 2019 were as follows:
– From 3% to 20%
– From 1% to 19%
– From 2% to 15%
In summary, the world’s wealthy currently hold about 3% of their wealth in gold.
– About half of them expect to increase their gold holdings
– Their gold holdings are expected to increase 5-6 times
– Their final average gold holdings are expected to be 15-20% of their wealth
What about you? How much have you allocated to gold? Or do you not want to be rich…