All that glisters

THE LEADER

There is little doubt investors have put the ‘bull' in bullion this year by sending it up 20.8% to $1,325.10 per ounce last week.

Investors apparently agree on bullion as macroeconomic uncertainty squeezes them out of other asset classes, and debasing paper currencies makes hard assets seem ever better. Little wonder the co-managers of Investec’s Global Gold fund – the hint to their view is in the name – said recent “positive gold price performance bodes well for the remainder of the year”. Bradley George and Daniel Sacks say demand stems from central banks, retail investors, jewellery buyers and QE2. Central banks are net buyers for the first time since 1988, with developing countries now major buyers while dev...