This page has been archived and commenting is disabled.
Buy Gold ! "Now Is A Good Time" - Fidelity Investments
"Now Is A Good Time" To Buy Gold - Fidelity Investments
Joe Wickwire, research analyst and portfolio manager at Fidelity investments, presented some very grounded, reasonable arguments as to why one should buy gold at the LBMA Precious Metals Conference in Lima, Peru which concluded on Tuesday.
Fidelity Investments Logo
Fidelity Investments are a largely family owned mutual fund and financial services company. It is one of the largest mutual fund and financial services groups in the world. Founded in 1946, the company has since served North American investors. This year they were voted best investment company in an online broker review by Stockbroker.com. They have gradually moved up in the rankings from eighth place in 2011.
They currently manage a massive $2 trillion worth of assets. Gold is a diversification and makes up only a small proportion of their overall assets. Thus their pronouncements concerning gold can be regarded as independent.
"I believe that now is a good time to take advantage of the negative sentiment short-term trading sentiment", Wickwire said as reported by the Bullion Desk:
|
Wickwire argues that, from an asset allocation standpoint, actual gold market fundamentals are not linked to transitory US stock market volatility or whether or not the dollar moves up or down against the euro or the yen. Those items can be the basis for short-term trading strategies but not for long-term portfolio construction. “I believe that now is a good time to take advantage of negative short-term trading sentiment,” Wickwire said. |
He emphasised that, while precious metals may respond to market volatility in the short term, in the longer term the fundamentals are sound.
As many as 40% of mining companies cannot turn a profit with prices below $1250. We can extrapolate therefore that if prices do not rise from where they now languish ($1163) many mining companies will fold. This would lead to a supply crunch and consequent rising prices.
Mr. Wickwire reviewed the conditions behind the surge in gold price from 2001 - 2008 and concluded that similar dynamics are currently in operation.
"Today is quite similar - there are negative real interest rates, while countries are using currency as a policy tool to support nominal growth at the expense of real growth. And on top of that, supply from the gold industry is starting to come down."
He emphasised the importance of owning gold as a form of financial insurance and concluded
"It's important to remember that a little gold goes a long way. If you had 5-10% allocation in your portfolio from 2000 to 2010, you wouldn't have suffered a lost decade."
We agree that in the long term gold acts as a counterbalance to and a hedge against market volatility.
To fret over declines in price is to miss the point. Holding an allocation of physical gold as a proportion of one's portfolio ensures that, if and when faith in paper and digital assets declines and counterparty and systemic risk returns, one is hedged and ones wealth is protected. This is the whole point of owning gold bullion.
As always we advise owning gold in allocated gold accounts in vaults in the safest jurisdictions in the world such as Singapore and Switzerland.
Get Breaking News and Updates on the Gold Market Here
MARKET UPDATE
Today’s AM fix was USD 1,161.00, EUR 930.81 and GBP 736.26 per ounce.
Yesterday’s AM fix was USD 1,151.25, EUR 927.90 and GBP 726.43 per ounce.
Gold for immediate delivery lost 0.1% to $1,162.60/oz in late morning trade in London. It reached $1,132.16 last Friday, November 7, the lowest since April 2010.
Gold in U.S. Dollars - 10 Years (Thomson Reuters)
Futures trading volume was more than double the average for the past 100 days for this time of day, data compiled by Bloomberg show.
Global bullion demand declined 2.5% from a year earlier to 929.3 metric tons in the third quarter, the lowest since the last quarter of 2009, the London-based World Gold Council said in a report today. Jewelry consumption slipped 4%, while bar and coin purchases dropped 21%, it said.
Although questions are being asked about the Chinese demand data as it appears to only view Chinese demand through the rather narrow prism of Hong Kong exports to China. However, today China is importing huge volumes of gold bullion from all over the world and therefore deliveries on the Shanghai Gold Exchange are a much better benchmark of real Chinese demand.
Holdings in gold exchange traded funds fell 4 tons to 1,620 tons yesterday, remaining at the lowest in more than five years due to poor sentiment and weak hand selling.
Holdings in the world's largest gold backed exchange-traded fund, SPDR Gold Shares, fell 1.8 tonnes to 722.67 tonnes on Wednesday. This is the seventh straight day of declines.
Gold in GBP - YTD 2014 (Thomson Reuters)
A small amount of the ETF liquidations are by investors concerned about the return of the Eurozone debt crisis, geopolitical risk and systemic risk and opting for the safety of allocated and segregated gold bullion coins and bars .
Some support was offered by buying of physical gold bullion in China overnight, dealers told Reuters.
Buy Gold Bars at the Lowest Prices and in the Safest Way
Zero Premium Gold, a new low cost and safer gold investment, has been launched today. It allows investors internationally to invest in physical gold bars at the lowest prices in the market. Investors can now own gold bars at a record low premium of just 0% which is at the live market spot gold price.
High charges or premiums for gold bars have made investors wary of physical gold bars in the past and led to the success of online gold account providers with pooled allocated accounts and gold exchange traded funds (ETFs).
Zero Premium Gold is as cost effective as gold ETFs and other gold investment vehicles with the added security of outright ownership of the underlying physical asset.
Related Link:
http://info.goldcore.com/zero-premium-gold-buy-gold-bars
- GoldCore's blog
- 11281 reads
- Printer-friendly version
- Send to friend
- advertisements -


Well let's think GC... you made this recommendation back in September and metal is Dow some 20 percent from there. But if you keep recommending you are bound hit it right eventually.
I am all in favor of metal... but anyone without a direct link to the BIS has no idea what is going to happen next. Still, keep on faking it I guess...
Gold people say buy gold. Shocking! I think I'll check if Cramer is still telling people to buy stocks.
buy gold now? really?
gold weekly looks like it has room to move lower to 1050
http://bullandbearmash.com/chart/spot-gold-weekly-shows-hammer-bottom-re...
if USD keeps moving higher 1050 should get tested
NO. WAIT.
It will be an even BETTER price at $750./oz.!!
Just WAIT and hold on for the Bargoon prices to follow!
I am so mucked up that i don't trust wall street. My fiat goes to income producing properties or PM. I like the shiney shit over paper...the jingle alone is pleasing. Sell? Why? Make sure your property has a good roof.
DeathDeathToToTheTheBankstersBankstersAndAndTheiR stooges....hick up.
I was talking with my 56 year old sister today. Her husband died 15 years ago. She said he was always buying gold against her wishes. I guess she should dump it all now?
I will take everything off your hands at the original 1913 Federal Reserve initiation price of $20./ounce.
EVERYTHING you have at the REMARKABLE price of Twenty Dollars per Ounce!
An AMAZINGLY great price, I tells ya!!
To own Gold is to posess Gold. If you do not posess it you do not own it.
Watch for good buys on Monday -- the US Mint will start allocated shipments of Silver Eagles. Premiums jumped when they ran out -- the price is still at $15.70 and the hope is that premiums will got down now that they are shipping again.
O look... Fidelity's logo is a pyramid with an all seeing eye... I must be a conspiracy theorist.
If you add up the numerical values of all the letters in Fidelity, they equal seven.
How many buildings does Fidelity estimate 1 OZ will buy?
Paper gold is easy to get, the real thing is getting pretty tough.....
So, based on the laws of econimics - supply and demand - why isn't physical gold skyrocketing? Demand is high and supply is low but the price is falling.
Well the PM market couldn't possibly be rigged, especially y the CB's.
Fofoa has done an excellent analysis of gold held by third parties.
If there is a crash and gold prices fall you will likely be cashed ot and not given metal.
READ THE PROSPECTUS!! IT IS IN THERE!!!
Here is his fear...if the derivative market falls apart gold prices could fall towards zero even as physical gold supplies are not to be found. This will likely lead to a physical only market with gold priced a lot higher.
Think...if you held physical gold and there was no trading being done due to a crash and perhaps a closing of the paper gold market...would you send your customers the metal or close them out at the then currenct cash price.
If you suspected that the metal was about to shoot up in price the temptation would be huge...do the right thing or become extremely wealthy.
You are better off holding it yourself in physical form If you understand gold you;ll buy a safe or learn to dig a hole. Do not trust anyone with your precious.
Fidelity advice is iffy at best. Last week I got a blurb about the stock market. They confused corporate profits with 'per share profits'....That little ommission led to suggestions 180 degrees from what the should have been.
Buying gold...if it physical you are tearing the dollar system apart. If it is paper gold you are supporting the paper gold market and therefore the current fiat system.
Gold is going down - downward trajectory is not complete.
Last time I took your advice I missed a once in a life time rally , Gols can be part of investment not an all in investment
czar
I think you meant 'Gold' is going down....don't conflate the metal with the current derivative market. It can lead to very unfortunate actions....
Buy phyzz silver...jeez, it's 15.60/oz right now, peeps. C'mon...load up. And with a GSR near 75:1 it's easily a huge discount compared to buying gold.
I mean really...would you rather have over 70 ounces of silver compared to 1 ounce of gold right now for the same money???
When that GSR plummets back down to Earth in the very near future and we start to see ratios closing in on 30:1, 20:1 and hopefully 15:1 and lower, then trade some cheap silver in for some gold.
The swap trade is a great way to accumulate phyzz gold and silver cheaply by trading back and forth at the high and low ratios. Right now at nearly 75:1 this ratio hasn't been seen in nearly 5 years in Jan. 2009. And before that it was Nov. 2003!
After that in April 2004 it dropped down to 50:1 before a small spike up to 68:1. In April 2006 it dropped to 46:1. At the end of 2008 it peaked at 83:1. By May 2011 when silver hit 49/oz the GSR dropped to 30:1 for a very short time.
Now after this long downward trend the GSR has climbed back to 75:1.
Play these highs and lows and trade your phyzz back and forth and you will greatly increase your ounces for just the price of the premium over spot.
In 2011 I traded about 70 ounces of silver for 2 ounces of gold. a few weeks ago I traded that gold back for 140 ounces of silver. Doubled the original amount of silver I gave for that gold in just 2 years.
I'll definitely be trading silver in for some gold (not a whole lot) but a whatever feels rigth at the time when the GSR starts coming down to the 30's again.
So for the best bang for your Bennie Bucks right now it's phyzz silver all the freakin' way unless you're mega loaded with cash and just want lots of big gold bars.
I just Loaded up on a few more tubes of physical silver Eagles and Maple Leaf's at my local coin shop! My word, I LOVE these awesome Sale Days!