The gold price
Gold Investment appeals for the 'permanence of long-term value' - 26 May 2009
A senior figure at HSBC claimed yesterday (May 25th) that Gold Investment should form about ten percent of any portfolio.
The yellow metal is favored both as a hedge against inflation and as a store of wealth, mainly as it has historically traded in the opposite direction to the dollar.
Now Charles Morris, who manages HSBC's $2 billion Absolute Return fund, has explained that Buying Gold has proved to be beneficial during the economic crisis.
He told Fund Strategy: "It's the highest-quality asset of all: high returns don't tend to come from high quality assets - but wealth preservation does.
"It's about permanence of long-term value: you could pass a bar of gold through the ages from the ancient Egyptians to the present day and it would still hold its value: its relative value through time is constant."
Those comments come after Wallace Ng, chief precious metals dealer at Fortis Bank's commodity derivatives unit, predicted that gold prices will continue to rise in the coming months and years.
"The medium to long-term trend is for higher prices but I think it's going to be a gradual move up rather than an explosive one," he told Bloomberg.
Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...
The yellow metal is favored both as a hedge against inflation and as a store of wealth, mainly as it has historically traded in the opposite direction to the dollar.
Now Charles Morris, who manages HSBC's $2 billion Absolute Return fund, has explained that Buying Gold has proved to be beneficial during the economic crisis.
He told Fund Strategy: "It's the highest-quality asset of all: high returns don't tend to come from high quality assets - but wealth preservation does.
"It's about permanence of long-term value: you could pass a bar of gold through the ages from the ancient Egyptians to the present day and it would still hold its value: its relative value through time is constant."
Those comments come after Wallace Ng, chief precious metals dealer at Fortis Bank's commodity derivatives unit, predicted that gold prices will continue to rise in the coming months and years.
"The medium to long-term trend is for higher prices but I think it's going to be a gradual move up rather than an explosive one," he told Bloomberg.
Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...
Goldbug, 26 May '09
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