Originally Posted by christopher leigh
No I didn'tI assume you don't know anything about this fund and are just trying to appear clever? Collective funds offer greater diversification that solely investing in gold and 'can' negate some of the risk associated.
Other than the fact that you're showing naivity in not thinking that the shares of gold companies track the price of gold (and it mirrors it very closely), I'll pick Graham Birch (a proven fund manager) to make investment decisions over you every time!
Look at the 5 year gold price v the 5 year price for Gold & General (the general meaning mining and other precious metals - gold being the primary concern).
Gold Price:
Notice the peak in March and then about 3 months ago!
Gold & General fund Price:
The previous high for gold before the recent 'boom' was in 1980 at about $850/oz but reached a high in March 2008 of over $1000/oz (since then it's dropped right down again - my original point in my previous post). As gold has been in a bull run since 2001, we may have already seen the peak of the gold price already.
The things that do point towards an increase in Gold's price are:
1) Strong consumer demand from India and China
2) A weak US$
3) Struggling financial markets
4) A reduction in gold output (supply and demand).
However, if anyone puts all of their money in gold (as 'Gold is King') quite frankly deserves to lose all their money for stupidity. You need to diversify across a number of investments.
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