gold

Gold During the Pandemic Winter

The pandemic winter will take longer than we thought. The longer we struggle with the coronavirus, the brighter gold could shine. A long, long time ago, there was a bad virus, called the coronavirus , that killed many people all around the world and severely hit the global economy. Luckily, smart scientists developed vaccines that defeated the coronavirus and ended the pandemic . Since then, humankind lived happily – and healthy – ever after. Sounds beautiful, doesn’t it? This is the story we were all supposed to believe. The narrative was that the development of vaccines would end the pandemi...

A Brief Pause

As is usual these days, a divergence from the market narrative leads to a mad scramble to find a news story to fit the unexpected market moves. The latest Bitcoin powered jump in equities ran out of steam overnight, with Wall Street having, shock of shocks, an almost unchanged day. It really shouldn’t have worried market watchers, as the US Dollar sell-off accelerated, and both oil and precious metals carved out more gains. Q4 2020 hedge fund letters, conferences and more In all likelihood, after a few firm sessions, equities just ran out of short-term momentum, with a lack of new drivers from...

First Eagle 4Q20 Market Overview: Turn, Turn, Turn

First Eagle Investment Management’s market overview for the fourth quarter ended December 2020, discussing gold as a potential hedge. Q4 2020 hedge fund letters, conferences and more Key Takeaways Though 2020 was a generationally poor period for value indexes relative to growth, hopes that the worst of the Covid-19 recession was behind us helped fuel a fourth quarter rebound in the mature, physical components of the economy most directly impacted by pandemic lockdowns.While the massive monetary policy response to the onset of Covid-19 appears to have cushioned the pandemic’s economic impact, i...

Precious Metals: Time To Move On

Understanding the Risks and Benefits of Investing in Commodities

Over the past decade, commodities have taken a back seat to equities and bonds as a popular investment option. But recent trends suggest they might be ready to make a comeback. If you’re reading this, you might be a part of a growing number of people asking, “Should I buy commodities now?” Q4 2020 hedge fund letters, conferences and more The answer? Maybe. But before we explore the potential benefits of investing in commodities, let’s dive into some examples to discuss what makes these assets so unique. A Commodities OverviewCommodities are generally produced through mining or farming activiti...

These Are The Ten Biggest Commodities In The World

Commodities are one of the most popular investment instruments for an investor. Their prices can be volatile as well, thus creating opportunities for traders to make a profit by taking appropriate positions in the market. If you are planning to invest in commodities, there are several options to choose from. However, it is recommended that you start with the biggest commodities as their prices are more stable, helping you to reduce your risk. To help you select commodities, detailed below are the ten biggest commodities in the world. Q4 2020 hedge fund letters, conferences and more Ten Biggest...

Will Interest Rate Increase Cause Gold to Plunge in 2021?

The decline in the real interest rates is the most important downside risk for gold. Will it materialize, plunging the price of the yellow metal? Q4 2020 hedge fund letters, conferences and more Increase In Real Interest Rates Is A Downside For GoldThe rise in inflation is the most significant upside risk for gold this year, but there are also a few important downside risks. The most disturbing for us is the possibility that the real interest rates will increase. Why? Please take a look at the chart below. As you can see, there is a strong negative correlation between the real yields and gold ...

Will The Supposed Silver Squeeze Spill Over Into Gold?

When Reddit users on the WallStreetBets forum turned their attention from GameStop to silver for an attempt at a squeeze, someone remarked that gold would be next. However, one firm said the attempted silver squeeze would not roll over into the gold market. Q4 2020 hedge fund letters, conferences and more Silver squeeze won't spill into goldRBC Capital Markets strategist Christopher Louney and his team noted that the concerns about a silver squeeze automatically trigger questions about whether something similar could happen to gold because both are precious metals. However, they believe curren...

Ruffer Investment Company December 2020 Interim Report

Ruffer Investment Company investment manager’s period end review for the period ended December 31, 2020. Q4 2020 hedge fund letters, conferences and more Ruffer Investment Company posted a NAV return of 13.5% and a Share Price return of 17% for 2020. However, just as importantly, at the peak of the crisis in March we were not losing money. Given the unique blow to the economy and the co-ordinated shock-and-awe global response, it seems fair to conclude that the distribution of possible outcomes from here is wider than it has ever been. This makes a genuinely all-weather portfolio even more imp...

When Cash Is Devalued, Where Should Investors Look For Salvation?

With a difficult 2020 receding into the past, investors are left to wonder what lies ahead for them, the economy, and their portfolios in 2021. Q4 2020 hedge fund letters, conferences and more The Impact Of The Pandemic On The EconomyUnfortunately, they may find that some investing decisions are still tied to the events of last year. Because of how the COVID-19 pandemic affected the economy, the Federal Reserve saw to it that enormous amounts of money were printed in 2020. That effort to shore up the economy also set off debates about inflation. Reports show that in excess of 23% of the U.S. d...