This is a true but cautionary tale about a bank. And, no, I'm not going to give you the name. In late 2000, gold celebrated 20 years as the best way to lose money on the planet, after falling by -70% from USD 850 to USD 275 an ounce. Ceding defeat, the bank closed its in-house gold fund. Then... gold went up 7 times from USD 275 to USD 1900. In crisis-torn 2011 (in a seminal issue of the Investment Committee), it was revealed that gold should have a "permanent place in client portfolios". Then... gold pancaked by -40% from USD 1900 to USD 1200- In mid-2013, the savants declared that gold had no place in client portfolios, things having got a lot better. Then... gold rose +8% from USD 1200 to USD 1300. And guess what? This week, the bank's venerable analyst issued a well-argued case for gold to be reduced further. Gold anyone?
Here is Fund Manager’s Diary.
If you are near London on March 7th, do come along and meet Iain Little at The Markets Now seminar.Back to top