All that glitters…

This update consolidates our thesis for owning GOLD exposures and our recommendations for portfolios into one place.

Over recent years, we have transparently identified and discussed in detail the warning signs that have been percolating. As well as the logic of hedging with gold, and the instruments we have and continue to utilise as a central ballast in our portfolio construction.

Consistent with our investment philosophy and purposeful DNA within our brand name, there has been, and is brewing, a confluence of ‘hard/quantitative’ macroeconomic signs and ‘soft/qualitative’ behavioural signals within geopolitics, driving gold’s attention.

Most recently, there have been signs of price momentum building among global investors (behavioural finance). There is a growing recognition of their acceptance of these quantitative and qualitative risks, and, most importantly, the potential for wealth-destroying outcomes.

Please do not confuse the trading time horizons' price volatility of gold with its investment horizon strategy reasons for ownership. As Luke Gromen's mantra reminds us, don’t miss the forest for the trees. But be fully aware that FOMO can affect many investors and traders in the short term due to such volatility.

The acceptance of the risk narratives that we have been discussing for a few years is now broadening. The gold price may be finally starting to show that skaters (investors) are finally skating to where the puck is going, not where it is!