New Telegraph 
With economic uncertainties persisting, historical patterns suggest that gold will continue to play a strategic role in investment portfolios in 2025, a report by Aequitas Investments has said.
According to the report, one key indicator supporting this trend is the Gold-to-Equity ratio, which has shown that during periods of heightened market volatility, gold outperforms equities.
When this ratio reaches low levels, past trends indicate a shift toward gold, often driven by economic crises, inflationary pressures, or stock market corrections–all of which remain relevant in the current global landscape.
As equity market participation rises to record highs, investors are increasingly viewing gold as a critical diversification tool to hedge against potential downturns, the report added.
The report added that the asset’s resilience in uncertain times reinforces its role as a stabilizing factor in portfolios.
It further stated that gold had historically served as an effective hedge against inflation, a concern that is once again at the forefront.
“The historical analysis of the Gold-to-Equity ratio, risk-adjusted return metrics, and inflationary trends underscore gold’s importance as a strategic hedge against financial instability,” the report added.
With signs of a slowdown in the Indian economy and sustained high inflation, demand for gold has surged. This is evident in the near-doubling of physical gold held by Indian gold ETFs over the past four years, reaching a record 54.5 tonnes as of October 31, 2024, the report added.
Citing these factors, the report said that gold remains a compelling investment choice for 2025, given that it provides stability and protection in an unpredictable economic environment.
