Investec’s Alastair Mundy has moved a significant portion of his £2.5bn Cautious Managed fund into gold bullion for the first time following savage price falls for the precious metal.
Mundy (pictured), who has been reducing his exposure to equities after a variety of indices hit record highs, said he has put 5% of his portfolio into physical gold in the last few weeks, after the precious metal fell in price by more than 25%.
From a peak of $1,796 last October, gold fell to a low of $1,322 last month, before rebounding some way. It currently trades around $1,450.
“We felt, with Japan announcing more stimulus, investors would get more bearish,” he said. “For us, gold is also a good diversifier for the fund as it is a hard currency replacement.
“It is also in reasonably finite supply, which contrasts nicely to paper money. The chances are, in the face of all this money printing, gold’s allure will increase significantly.”
Read more: http://www.investmentweek.co.uk/investment-week/news/2266059/investec-s-mundy-buys-physical-gold-for-first-time-after-selloff#ixzz2Sf1g0ymU
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