Three reasons why gold is still a safe haven

GOLD

Bradley George, co-portfolio manager of the Investec Global Gold fund, explains why the case for investing in the precious metal remains compelling despite near-term headwinds.

As is the case with many commodities, peaks and falls in the gold price draw considerable investor attention. Despite the near-term headwinds, we remain positive towards gold for three key reasons which we will consider below. First, we look at the macroeconomic factors driving gold; secondly, we note that central banks remain net buyers, a structural trend that we believe will continue to unfold; and thirdly, we look at medium to long-term investment capital which remains stubbornly invested in gold. Finally, we will look at gold equities, which we believe have significantly de-rated...