Why do these investors own so much gold?
Peter Walden, News Editor
7 Dec 2015, 2:18 p.m.
Despite the gold pricing declining over $800 per ounce since August 2011, a number of big players are adding gold bullion to their portfolios.
Ian Stewart, who runs the popular Newton Real Return Fund, believes financial markets are been driven higher by quantitative easing rather than fundamentals. As currencies continue to be debased the fund is holding gold as an insurance policy. Stewart believes inflation could be ignited if central bankers attempt to inflate away the debts that have been built up over the last 30 years.
Personal Assets, Ruffer Investment Capital and RIT Capital all allocate a small percentage of their assets to gold with the aim of preserving their client’s capital.
Wealth manager, Psigma, plans to allocate gold to their portfolios when they can see evidence of inflation returning. After years of being shunned by Wall Street and the City of London it appears some of the big money is finding its way back into the yellow metal.