New Study: Adding Gold to IRAs May Boost Returns by Up to 78 Basis Points & Reduce Drawdowns by 14.6%

LAS VEGAS, May 7, 2024 /PRNewswire/ — A new study by Anthony Termini, former Managing Partner of Beta Capital, LLC, reveals that including gold in an Individual Retirement Account (IRA) has the potential to significantly enhance returns and mitigate risk over the long term.

The study, published here, used historical performance data on asset class returns from 1972 to 2024. The authors of the study backtested the performance of various common portfolio models with and without gold allocations.

Study’s Key Findings:

  • Underperformance of Traditional Assets During Key Periods: The study backtested the performance of various portfolio models, including traditional allocations of stocks, bonds, and cash. It found that these portfolios underperformed during significant stock market downturns.
  • Gold Performance in Times of Crisis: The research demonstrates that adding gold to these portfolios improved performance during the five worst years for stocks between 1972 and 2024, outperforming both stocks and bonds in each instance.
  • Overall Long-Term Return Potential: The study also shows that including gold within IRAs led to higher overall returns compared to traditional asset allocations. This improvement ranged from 8 to 78 basis points annually, depending on the specific gold allocation within the portfolio.
  • Adding Gold Reduced Portfolio Volatility Overall: Furthermore, the research indicates that incorporating gold into portfolios reduces overall volatility, potentially minimizing losses during market downturns. The maximum drawdown across the studied portfolios was reduced by as much as 14.6% with the inclusion of gold.
  • Low Awareness of Gold IRA plans in America: Despite these potential benefits, the study highlights that awareness of the ability to own gold in IRAs remains low. The study author estimates that less than 0.5% of IRA assets currently hold gold, indicating a significant missed opportunity for many investors.

The study emphasizes the importance of carefully considering gold within the context of individual investment goals and risk tolerance. However, the findings strongly suggest that gold can be a valuable component of a well-diversified IRA portfolio, offering the potential for both enhanced returns and reduced risk over the long term, not just during periods of economic instability.

The full study can be found here:

About the Author & Study:

This study was conducted by Anthony Termini, the former Managing Partner of Beta Capital, LLC, a private hedge fund in Reno, Nevada. Anthony began his investment career in the mid-1980s at Kidder, Peabody & Company’s Private Client Group. After nearly 20 years in San Francisco with stints at Bear Stearns and Merrill Lynch, Tony joined Kochis Fitz (now Aspiriant), one of the largest independent Wealth Management firms in the country. He contributed to the books Wealth Management: A Concise Guide to Financial Planning and Investment Management for Wealthy Clients and Diversify or Die: Diversity. Inclusion. Evolution. Success and is a frequent contributor to many financial publications.


Mark Turner
Editorial Team


SOURCE Anthony Termini