Arab Today, arab today gold investors need not worry about ides of march
Last Updated : GMT 19:46:03
Arab Today, arab today
Arab Today, arab today

Gold investors need not worry about Ides of March

Arab Today, arab today

Arab Today, arab today Gold investors need not worry about Ides of March

New York - Arabstoday

Risk on\" say fund managers. With cash returning rates lower than the rise in the price of food and goods, why save? Therein is your first push towards risk taking. Now add in the recently established fear that US and European governments might default on their debt; there you have a secondary push towards risk taking. With many of these European governments needing to roll over their debts in March, one is tempted to bring in the soothsayers\' warning to Caesar: \"beware the ides of March\". With the traditional safe havens looking vulnerable, one of the others, gold, remains \"different\"; it retains a safe haven reputation and through \"gold miners\" (companies producing the gold), they present a much vaunted risk opportunity. We covered the Gold Equities opportunity last month (DSAM Fund — 12 February 2012). Since then, HSBC Global Gold Index fell around 11 per cent. Clearly, not a good time for gold. So, is this a good time to give up on the idea? Not according to Investec\'s Bradley George: \"Since the end of February, gold and gold equities have sold off on the back of recovery signs in the US and stabilisation in the Eurozone. However, we remain positive towards gold and do not see this pullback as long lasting.\" Gold, it seems, remains inversely correlated to stabilisation and good news. Reminds me of a comment from Eric Meyer, CEO at the Dubai Shariah Asset Management (DSAM) Kauthar Gold Fund, who says: \"The worst thing about holding gold in your portfolio is that if our fund goes down 10 per cent, the rest of your portfolio has gone up!\" Now, that\'s a sales line with a difference. On that basis, good news or bad, gold should have a place in your portfolio. Say, around 5 to 10 per cent of a balanced portfolio. However, individual risk appetites will drag the weightings one way or another. Added bonuses for the DSAM version include: it is a Sharia-compliant fund which will appeal in certain quarters, plus, it has a long/short ability. You might recall that the DSAM Kauthar Gold Fund invests in equities, and not physical gold. George Bradley\'s take on the \"gold miners\" is that currently, the miners are \"generating higher free cash flow than historic averages and importantly that cash flow is being translated into higher dividend yields\". Remember, physical gold has no yield. It just sits there going up and down in price, whilst looking pretty on my wife\'s ears. More importantly, Bradley sees opportunity in the spread between gold bullion values and gold miners: \"Valuations are indeed very attractive. Of the 50 companies we value, we have on average 58 per cent upside potential to target prices derived from DCF and multiple valuation methodologies. Importantly, this uses a very conservative $1,300 an ounce long term gold price.\" The risks to Investec\'s bullishness include rising energy costs which are typically 40-to-50 per cent of the gold miners\' costs, and government. Government fear comes in the form of nationalisation and taxation. \"We are cognisant of where mines are located and the political/economic climate in these countries,\" Bradley says. Patience is key So, gold, good or bad? For Bradley, the conclusion is: \"We don\'t think the fundamentals have changed. Gold bullion can be volatile as investors react to short-term events. Patience is required with the related gold equities as they take time to generate cash flow and investors like to see evidence of cash. The valuation anomaly that exists in gold equities has seldom presented investors with such an opportunity for gold exposure.\"

arabstoday
arabstoday

GMT 16:08 2017 Saturday ,14 October

US stocks rise on strong retail sales; Europe mixed

GMT 04:42 2017 Saturday ,14 October

Egyptian Bourse gains EGP 2.6 bn

GMT 04:32 2017 Saturday ,14 October

US stocks rise on strong retail sales; Europe mixed

GMT 20:52 2017 Thursday ,12 October

Egyptian Bourse loses EGP 3 bn

GMT 13:12 2017 Thursday ,12 October

Bahrain Bourse daily performance

GMT 11:06 2017 Thursday ,12 October

Wall Street ends at fresh records; Spanish stocks gain

GMT 21:13 2017 Wednesday ,11 October

Bahrain Bourse daily trading report (update)
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold investors need not worry about ides of march Arab Today, arab today gold investors need not worry about ides of march

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold investors need not worry about ides of march Arab Today, arab today gold investors need not worry about ides of march

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday