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Gold
investment offers an attractive store of value in times
of uncertainty caused by factors such as global political
instability, the war against terrorism, weak stockmarkets
and US dollar volatility.
Investing
in gold and gold-related companies with their low correlation
to other assets offers an opportunity for true diversification
within investment portfolios.
The
demand for gold as an alternative investment asset increases
when confidence in paper assets declines - this is particularly
relevant when investors are faced with weak stockmarkets
and generally poor corporate profitability combined
with questionable accounting practices.
Gold
has a negative correlation to the US dollar and typically
increases in value as the dollar weakens.
Gold
is a proven hedge against inflation and deflation.
The
gold market supply/demand fundamentals are attractive
with global gold production peaking and the economic
environment supportive of continuing investment demand.
Small/medium
capitalisation gold producers offer the opportunity
for above average growth potential.
Gold is still inexpensive relative to financial assets
on a historical basis and can be seen as being - despite
recent rises - in the early stages of a long term bull
market.
For
the latest Investors Monthly Report on the fund, please
click updates.
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