WHY GREEN BONDS?
- Green Bonds were created as a means to tap into the $115+ Trillion dollar bond market and mobilize financing towards climate mitigation projects.
- Demand for Green Bonds from environmentally conscious investors has skyrocketed to over $200 Billion in 2019, since its introduction in 2008 by the World Bank.
- Green Bonds have a similar risk profile to traditional bonds, and are thus seen as lower* risk investment with positive outcomes. (*relative to other financial instruments)
- Interest payments on green bonds are usually lower than that of bank loans.
WHY GOLD?
- A secure global store of value; Historically, gold has maintained its value over time.
- Gold can provide financial security during geopolitical and macroeconomic uncertainty as well as financial uncertainty. The price of gold tends to increase when confidence in Government and fiat currency is low.
- Gold acts as an excellent hedge against inflation: The price of gold rises as cost of living increases. In the case of deflation, Gold’s value remains relatively stable as fiat currency loses value.
- Gold is chosen as a portfolio diversifier due to it’s negative correlation to stocks and other financial instruments.