Murray on physical gold's rising appeal among IFAs

Asset TV spoke recently with Angus Murray, chief executive at Castlestone Asset Management, on the rationale for launching an exclusive share class for Friends Provident International's mirror fund range - Castlestone Aliquot Gold Bullion. He also explained the benefits of investing in the physical asset versus equities.

What are the benefits of investing in gold? Looking back, the reason we decided in 2002/2003 to start up a physical gold bullion fund was that we thought the value of money would fall over a period of time. As a result of that, what we thought we would see is that real assets, unleveraged real assets like gold bullion, would probably outperform financial assets like stocks or the S&P 500. So to us there are two main reasons for owning gold bullion. The first is the protection against the devaluation of money and the second, as we saw post-September 2001, is that there is a need to own s...