Golden Fears

Man Group

Henry Neville

Research

29 Pages

Henry Neville argues that while gold has historically provided modest hedging against inflation and equity drawdowns, its current behavior, logistical costs, and uncertain long-term demand dynamics mean it should be a limited, not central, defensive allocation in portfolios.

Date published: December 17, 2025

Key Takeaways

Reasons to Allocate: There are two principal reasons why investors might add gold to their portfolios: inflation and crisis alpha.
Inflation Protection: Our findings indicate that it has historically served as a modest inflation hedge and offered some protection during equity drawdowns, though its contribution to overall portfolio performance has been limited
Key considerations: Gold’s current odd behaviour, logistical hassle and the prospect of tectonic shifts for the shape of gold demand fundamentals in the coming decades
Source: Finaeon, Man Group calculations. Date range: 31 December 1257 – 31 October 2025.
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