Gold as an Investment

Throughout history gold has been a store of value. According to the Talmud you should keep one-third of your assets each in land, 'business interests', and gold. This idea has a modern equivalent in the Permanent Portfolio theory which prescribes a mix of 25% each of Treasury bills, long bonds, stocks and gold. Most pension funds invest only in equities and bonds, with small allocations to property and cash. However, in recent years concerns have grown over the risks inherent in these asset classes, leading to increased interest in gold by hedge funds.