Gold’s continuous ten-year rise hasn’t

sheltered it from controversy. Despite

producing consistent returns in virtually

all currencies year after year, some

market pundits still question its validity as

an asset class. It’s true that gold doesn’t

pay any interest, and it’s also true that

much of the gold produced throughout

history still exists in some form today.

But these characteristics shouldn’t inhibit

it from performing as a monetary asset.

Cash, after all, doesn’t pay real interest

either, and there is more fiat money in

existence today than ever before. So

why does gold still receive such harsh

criticism?

We believe much of it stems from a

widely held misconception that gold is

forming a financial bubble. It’s a fairly

straightforward view – that gold buyers

are merely foolhardy speculators buying

on a whim with no rationale other than to

sell to the ‘greater fool’ at higher prices in

the future. It’s a view that assumes that

gold has no intrinsic value and is simply

a speculative asset that has captured

investors’ imaginations.

We don’t take these views on gold lightly.

We’ve seen bubbles before and fully

know how they end. We have no interest

whatsoever in participating in some sort

of speculative frenzy – that’s a recipe

for disaster in the investment business.

Thankfully, however, our gold investments

present no such risk. As our analysis has

revealed, gold is actually a surprisingly

under-owned asset class – and one

that has generated far more attention

in the media than it probably deserves.

While its exemplary performance since

2000 is certainly worthy of discussion,

gold simply hasn’t commanded enough

investment to warrant the bubble fears it

seems to have aroused among market

pundits and business commentators.

The truth about gold is that most people

simply

…yet.