Investors have accumulated the largest-ever gold hoard this week as Europe's deteriorating debt crisis has prompted investors to flock to safe havens.
As the asset class recovers its ‘safe haven' status, Neil Gregson, co-manager of the JPM Natural Resources fund, examines what the future holds for gold.
Investors should have been buying portfolios of gilts, treasuries and bunds, as well as commodities, while avoiding major indices, to maximise returns in 2011.
Gold ETFs and similar products witnessed inflows of 77.6 tonnes in the third quarter of 2011, which was 58% above year-earlier levels of 49.1 tonnes.
More than a third of investors believe commodities will produce the best returns over the next 12 months compared to other assets. Managers reveal where the best value lies.
As the precious metal lost 15% of its value, Philip Gibbs jettisons almost all gold holdings from the Jupiter Absolute Return fund through ETF sale.
Philip Gibbs effectively sold out of his gold positions within the Jupiter Absolute Return fund in September, a month which saw the precious metal lose 15% of its value.
Bailing out the banks is not a solution to the debt crisis, and eurozone leaders should let troubled banks fail, said investment veteran Jim Rogers.