Role Zlata v Investičním Portfoliu

The goal of this thesis is to find out under what circumstances it is beneficial to have gold in an investment portfolio. In the theoretical part of the thesis, the global debt levels are analyzed. In addition, the influence of money supply on the global economy is also inspected. Economic downturns are described as well as the diversification properties of gold. Moreover, the role of gold as a safe haven and a hedge asset is evaluated. The methodology of this thesis is based on the Geometric Brownian Motion. Simulations in programming language Python are implemented to examine under what circumstances it is beneficial to have gold in an investment portfolio. The findings indicate that under extreme negative market conditions, gold benefits the investment portfolio. The resulting simulations also imply that gold stabilizes returns in the long run. However, adding gold to an investment portfolio when the economy is growing reduces the potential profit from investing in stocks.