Newton's Stewart: Why I am adding to my gold positions

Iain Stewart, manager of the £7.9bn Newton Real Return fund, has added to his gold holdings in the belief the precious metal can still act as a hedging tool in investors' portfolios.

The price of the precious metal has dropped more than 21% to just above $1,300 so far this year, as concerns intensify over the tapering of quantitative easing in the US. But despite the drop in the value of the precious metal, Stewart (pictured) continues to believe that there is "a place for a real asset in a world of entirely paper-based promises". Real Return co-manager James Harries said: "Although the price has moved dramatically the backdrop is very similar and likely to be supportive to the gold price longer term. "We have therefore added to both our favoured gold mining sh...