The current bull market for gold and the relative rise in the value of silver have attracted the attention of investors. Central banks have met the economic consequences of the coronavirus pandemic by further loosening of the monetary system. This has created negative real yields for many sovereign bonds and a growing distrust among investors for fiat (government issued) currencies.
Gold is best understood as a currency, not a commodity. Historically, gold has been the currency of last resort. It is a hedge against inflation, against the collapse of a fiat currency, and indeed even of an economy.
While attracted to gold in principle, many investors may not be aware of the best way to gain exposure to it. For example, both physical bullion and mining equities are available. Even investors who include some gold in their portfolios many be gaining insufficient exposure to its diversification benefits. To obtain the best exposure at the right time, an active approach is needed that combines the optimal mixture of mining equities, gold, and silver.
In this presentation the learning objectives will be to:
- Explain the role gold can play in a diversified portfolio
- Understand the benefits of investing in silver alongside gold
- Discuss the role gold can play as an inflation hedge
Speaker Bio:
Ned is the lead portfolio fund manager of the Merian Gold and Silver fund. Ned joined Jupiter this summer following the takeover of Merian Global Investors by Jupiter in July 2020.
Ned has over 15 years of industry experience joining Merian from Smith & Williamson in 2015.