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The golden years are back
With dark clouds looming in the horizon in the form of slowing economic growth and rising commodity prices, advisers and wealth managers should consider gold bullion, which can offer a decent hedge against adverse inflation and interest rates
Of all people, IFAs should always remember that "past performance is no guarantee of future returns" and that the low risk and incredible returns seen in most asset classes in recent years may not be repeated for another few years. The four most expensive words in the investment lexicon are "this time is different".
Gold’s non-correlation with the major asset classes means that it is becoming and will increasingly become an essential diversification in investment portfolios internationally. By using, for example, the Perth Mint Certificate Programme, investors can now invest in gold bullion in an extremely safe, tax-efficient and cost-effective way. Furthermore, unlike ETFs, IFAs can receive commissions for investments in gold bullion in the PMCP.
The wise old Wall Street adage to invest 10 per cent of one’s portfolio in gold and hope it does not work is more important now than at any time in living memory.
Mark O’Byrne is executive director of Gold and Silver Investments Limited
