PA ANALYSIS: For gold’s sake, stop talking safe havens
Gold has had a good start to 2016 but three months of positive fund returns and an upwardly mobile price are not enough to badge it as a safe haven.
Gold has had a good start to 2016 but three months of positive fund returns and an upwardly mobile price are not enough to badge it as a safe haven.
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Gold outperformed most other assets as global equity markets took a beating at the start of 2016, according to State Street Global Advisors.
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Contrarian investments have been the best performing since the start of the year, according to FundCalibre.
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The biggest portfolio risk this year is not yet priced into the market, said Kevin Liem, chief investment officer at wealth management firm TTG in Hong Kong.
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Although commodities are still being treated with a great deal of suspicion, by taking a long-term view investors could reap the rewards of the consolidation that is already underway in the sector.
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A gold rush has gripped Monaco. All but one of the fund selectors our researcher interviewed when she visited the principality recently, said they are either sure they will buy more gold or will seriously consider the opportunity.
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Old Mutual Global Investors said it intends to launch the Old Mutual Gold and Silver Fund next month.
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The strong rise in precious metals prices seen last month has sparked a bout of profit taking, with gold and silver investors selling and buyer numbers falling, according to BullionVault.
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Given how many clouds there are around at the moment, silver linings are pretty hard to come by.
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UBS has cut its short term price target for gold 13%, citing a particularly challenging macro environment.
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Gold and precious metals funds saw $1.1bn of outflows over the past week, according to Bank of America Merrill Lynch.
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Gold fell through the psychological $1,100 per ounce level on Monday as prices plunged more than 4% in morning trade.
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