WAY Charteris Gold Portfolio Fund
Going for gold...
References: All data & statistics correct as at: 1st February 2010.
Gold is traditionally viewed as the ultimate safe haven during times of economic volatility...
For centuries individuals have used gold as a store of wealth and as insurance against the fluctuations and depreciation of money. Throughout history, perhaps no other asset in the world has had the universal appeal of gold. And this appeal has even increased in recent times due to the very significant macroeconomic, geopolitical, monetary and systemic risk that now faces our modern global financial system and economy.
Gold was the dominant investment story of the last decade, trouncing all other asset classes. In November 2009, it smashed through the US$1100 per ounce barrier, only to reach another all time high of over US$1200 not long after, marking a 12-month run of more than 50% (Source: Charteris Treasury Portfolio Managers Limited, 1st February 2010).
Savers opt to invest in gold for usually one of two reasons - it's traditionally viewed as the ultimate safe haven during times of economic volatility and therefore seen as a wealth preserver. In addition it is used as a hedge against the US dollar.
Despite a recent correction, fundamental reasons for investment remain strong (Source: Charteris Treasury Portfolio Managers Limited, as at: 1st February 2010):-
- The US Dollar is weak and getting weaker due to national economic policies which do not appear to have an end;
- Central banks in several countries have stated their intention to increase their gold reserves instead of selling them;
- Gold consumption is increasing markedly in India and China due to an increase in national wealth. Indeed it is only recently that Chinese nationals have been permitted to hold gold; and
- Worldwide gold production is not matching consumption. The price will naturally go up if demand increases.
Collective investment vehicles are a good way to invest in the precious metal mining sector as an investor's risk is reduced; such funds are not dependent on the performance and profits of one or two companies but specialists such as Charteris Treasury Portfolio Managers Limited select and manage a portfolio of gold mining shares.
1. Data & Statistics - Financial Express
2. Others: Lipper; Charteris Treasury Portfolio Managers Limited
Independent commentary for IFAs: "Heavy metal"
WAY Newsletter for IFAs: "Go for Gold!"
View WAY Charteris Gold Fund: Video
Latest WAY Charteris Gold Fund: Factsheet
WAY Charteris Gold Portfolio Fund: Plan Documents
The price of shares and the income from them can go down as well as up as a result of changes in the value of the underlying investments and currency movements. An investor may not get back the amount originally invested. Past performance is not necessarily a guide to future returns.