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News & ResearchThat Was A Good Half

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No, not the World Cup ... you'll be pleased to hear. The first six months of 2014 have been pretty good for precious metals. We take a quick look. 

We wrote a couple of times last year that we wondered if the correction in prices in 2013 might prove, in hindsight, to have been a decent opportunity to average down on (or initiate) positions in precious metals. 

We are strong believers in precious metals for portfolio diversification and think that investors should accept that when conventional assets like bonds and equities are rising that commodity prices may be falling - and that this shouild be considered part of the point of diversification (even if it doesn't bring much cheer to the investor at the time, we do sympathise). 

Even within the diversification afforded by exposure to precious metals, there is the possiibility of further diversification by investing in gold, silver, platinum and palladium. The latter two tend to move in sympathy with the fortunes of the automotive industry (which has been booming this year) for example, and therefore perform more in line with equity markets than either gold or silver.

We understand that most portfolios are underwieght in their exposure to precious metals (World Gold Council estimate an average of 1% of total assets) and wonder if investors might want to look again at their overall portfolio, and the part that precious metals could play in it, as the second half of 2014 begins.

We believe that whilst technical analysis can help with market timing, investors should consider the bigger picture when thinking about when to buy precious metals. The main historic drivers of higher prices for gold, silver, platinum and palladium appear to still be in place.

We are obvioulsy not the only ones who think so given the recent price moves.


Buy all four metals without suffering GST or VAT by storing in Guernsey and please ask us about the CGT exempt assets availabe if you are UK tax paying investor.  



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Saturday July 5, 2014 by Sam Schofiled