Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 21 2017
By: Ira Epstein

Bitcoin, Bail Ins And Bullion
By: Mike Maloney

Tactics For The Gold Bull Era
By: Stewart Thomson

Dow Peaking? The Quick Guide to Diversifying Your Stock Profits
By: Jeff Clark

What History Says for Gold Stocks in 2018-2019
By: Jordan Roy-Byrne CMT, MFTA

 
Search

GoldSeek Web

 
Gold “Insurance Policy” and Deserves a Place in Portfolios – Carmignac


 -- Published: Wednesday, 26 August 2015 | Print  | Disqus 

Gold has a place in high-net worth individuals portfolios as an insurance policy against systemic risk in the banking system, says Carmignac commodity investor Michael Hulme.

Emma Wall Morning Star - "Why Should I Invest With you?"

EW: Hello, and welcome to Morningstar series, “Why Should I Invest With You?” I’m Emma Wall and I’m joined today by Carmignac’s Michael Hulme. Hi, Michael.

MH: Hi Emma

EW: So, we’re here today to talk about commodities. That’s your bag. I thought we’d start with that headline grabbing commodity, gold. Gold has hit the headlines this week because $2.3 billion worth of gold ETFs have been sold as gold hit a five-year low. How much further can gold can go and should we care?

MH: Very interesting question. Yes, gold has certainly lost some of its luster recently and I guess, many people are asking the question, is it foolish to invest in gold?

I think gold still has a place in portfolios. I think gold, in particular, has a place in high net worth individuals portfolios and I think there were several reasons for that.

Gold is really an insurance policy against systemic risk in the financial system now.

While it’s been nearly seven years since the last melt down, given the jitters we’ve seen in China recently and the ongoing concerns about leverage and credit worthiness globally, I still think gold has a role to play as a modicum of insurance policy.

I think that’s compounded by the fact that although we’ve seen a lot of sales of gold, actually if you look at China recently, over the last several years they’ve actually been increasing their stocks of gold and adding to them over time. And I think the prudent investor — while you can make a case for saying gold is actually any worth as much as anyone thinks it should be worth, but the prudent investor might take heed of the fact that what the Chinese are doing.

Yes, they are devaluing and to a certain extent that’s exporting deflation. But actually overall across the world what we’re seeing is a series of competitive devaluations, and ultimately they are inflationary in terms of (fear of) currency.

So what we will see over time, I think is a reasonable chance that we’ll see an inflationary risk rising across the spectrum.

There are also risks obviously of a more systematic nature. In that context, I think certainly from a technical perspective, gold looks quite intriguing here.

Founded in 1989 by Edouard Carmignac and Eric Helderlé, Carmignac is now one of Europe’s leading asset managers.

Read transcript and watch video here

DAILY PRICES

Today’s Gold Prices: USD 1134.40, EUR 724.63 and GBP 990.05 per ounce
Yesterday’s Gold Prices: USD 1,154.25, EUR 999.35 and GBP 730.56 per ounce.
(LBMA AM)

August Month to Date relative performance

August Month to Date Performance
Yesterday, selling in the futures market saw gold fall $13.60 to $1139.50 in New York – down 1.1%. Silver slipped 0.95% or 14 cents to $14.64 per ounce.

As ever, it is vitally important to focus on asset performance and investments over the long term – months, quarters and of course years. So far in August, gold has outperformed the vast majority of major assets (see table above) and is 3.57% higher for the month while leading stock indices have fallen by more than 10%.

Gold’s hedging and safe haven characteristics are being shown again and we believe this important safe haven importance of gold in a diversified portfolio will again become evident in the coming months.

BREAKING NEWS

Gold prices consolidate but currency weakness may provide support – The Bullion Desk
Precious-Metals Trading Is Probed by EU After U.S. Inquiry – Bloomberg
Dow, S&P close lower in biggest reversal since Oct. 08 – CNBC
Mood Getting Worse on Wall Street as S&P 500 Floor Eludes Bulls – Bloomberg
World shares sag as China jitters persist – Reuters

IMPORTANT COMMENTARY

Gold a ‘Buy’ says Barrat – Bloomberg Video
Gold Facts and Gold Speculations – GoldSeek
Donald Trump, Fascist – Daily Reckoning
The cronies are on the run – MoneyWeek
Chinese alarm over? No, this is merely a pause in an ongoing debt crisis – The Telegraph

Click on News and Commentary

Download Essential Guide To Storing Gold Offshore


| Digg This Article
 -- Published: Wednesday, 26 August 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.