Sunday, September 28, 2025

Gold and Other Commodities are Key to Hedging Potential Market Risks

Gold and other commodities are key to protecting portfolio's from unexpected risks such as inflation and supply shocks Goldman Sachs explains. Commodities outperformed in 2022 when the energy crisis kept equity-bond portfolios struggling. Goldman Sachs analysis shows that in a full year that had stocks and bonds showing negative returns, either gold or commodities had the exact opposite with a positive showing.

Preparing for the next couple year, commodities are expected to gain volume in their role with government using resources as leverage with the addition of supply chains tightening. By 2030 the U.S. is projected to supply a third of Global liquified natural gas exports, while China controls 90 plus percentage of rare earth refining. Energy persists as the most inflation sensitive hedge,  but other industrial metals and rare earths are close seconds reinstating why commodities are an important inclusion for portfolio diversification.

https://www.goldmansachs.com/insights/articles/why-investors-should-hedge-with-gold-and-other-commodities
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2 comments:

  1. TripSeptember 28, 2025 at 9:20 PM

    Rowan, this was a great blog. With gold up 44% YTD, and continuing demand for precious metals as a hedge to market and public failures I will consider adding it into my own portfolio through a gold-backed ETF

    ReplyDelete
  2. Ryan BettsSeptember 28, 2025 at 10:15 PM

    It is interesting to see how commodities can become the backbone of a portfolio and protect from the unexpected risks in our currently volatile market.

    ReplyDelete

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