Analysis: Gold’s Pricing Implies Treasuries Are Junk
Why Gold Is Replacing Treasuries in Reserve Portfolios
Why Gold Is Replacing Treasuries in Reserve Portfolios
SEB (Skandinaviska Enskilda Banken), is a leading financial services group in Northern Europe. They published an interesting (if aggressive) comment on Gold vs Treasuries. Here is that analysis broken down with their original comments attached.
Contents
The End of a Longstanding Correlation
Treasuries Now Carry Political Risk
Quantifying the Risk: A 5% Political Discount
Gold’s Implied Risk Premium Is 5.7%
Strategic Drivers Ahead: US–China Conflict, Powell’s Successor
Gold as Core, Treasuries as Conditional