In order to decide whether to initiate a position in gold, the protagonist has to evaluate its capabilities as a strategic component in any portfolio, as well as whether the time is ripe for an opportunistic tactical allocation. Be considered, such as supply and demand for gold from the paths of real interest rates, inflation expectations, the debt crisis in the euro zone (and other financial charges) and the international value of the U.S. dollar will be affected, must be, among other factors.

In order to decide whether to initiate a position in gold, the protagonist has to evaluate its capabilities as a strategic component in any portfolio, as well as whether the time is ripe for an opportunistic tactical allocation. Be considered, such as supply and demand for gold from the paths of real interest rates, inflation expectations, the debt crisis in the euro zone (and other financial charges) and the international value of the U.S. dollar will be affected, must be, among other factors.
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from
Francis Warnock
Source: Darden School of Business
19 pages.
Release Date: 14 March 2011. Prod #: UV5645-PDF-ENG
Global Asset Allocation: All That Glitters? HBR case solution