YEREVAN, June 5. /ARКА/. Several phenomena are behind the rise in gold prices, stated Martin Galstyan, Chairman of the Central Bank of Armenia.
According to him, one of them is the diversification effect.
“If you diversify your portfolio, gold is considered a good alternative. There is an inverse correlation with other assets, because portfolio theory dictates that you should take assets that move opposite to the asset you already own,” he said on the Rearrange podcast.
Among other reasons, Galstyan also pointed out that the freezing of Russian reserves prompted central banks in some countries to hold an asset that is not a liability to anyone.
“Gold is such an asset,” he explained.
