%0 Journal Article %A Robert K. Shapiro %A Ric Thomas %T Should Institutional Investors Own Gold? %D 2011 %R 10.3905/jii.2011.2.3.019 %J The Journal of Index Investing %P 19-27 %V 2 %N 3 %X Institutional investors are not significant owners of gold. If gold effectively hedges inflation, then gold could merit consideration as a strategic allocation in a pension fund. This article evaluates gold’s ability to hedge inflation and monetary policy and tests whether gold should receive a strategic allocation in a pension fund. The findings show that gold is a better inflation hedging tool than other commodities and that, even at a low level of expected return, gold receives a positive strategic allocation in a diversified plan.TOPICS: Other real assets, pension funds, portfolio construction %U https://jii.pm-research.com/content/iijindinv/2/3/19.full.pdf