Tana Goldfields - Gold or MFs: Which is better for long-term investment?
Barclays Hires Investment Bankers to Lead Metals and Mining
(Reuters) - Barclays (BARC.L) hired two investment bankers to lead its global metals and mining team, luring them away from rival UBS (UBSN.VX) and boutique investment bank Liberum Capital.
The bank said on Thursday that Paul Knight and Michael Rawlinson will be co-heads of the team and will join Barclays in the fourth quarter.
Knight, who will be based in Toronto, will also be a vice-chairman, Barclays said.
He spent the last 18 years at UBS, most recently as a vice chairman and managing director in Toronto. His roles at UBS included chief executive officer for Canada, global head of metals and mining and head of Latin America investment banking.
Rawlinson, who will be based in London, was a managing director at Liberum, which he co-founded in 2006, and led the metals and mining corporate finance team.
Rawlinson and Knight will report to Julian Vickers and Jeremy Michael co-heads of global natural resources. Knight will also report to Bruce Rothney, Barclays' country head for Canada.
(Reporting by Michael Erman; Editing by David Gregorio)
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yukolaolaw01: 43PC Bought More Gold After Price Plunge
When asked whether they had made any changes to their precious metal investments over the past year, 37pc of investors said they hadn’t changed their allocations to silver and gold, while 43pc had increased their holdings.
Just 14pc of investors said they had reduced their holdings, while 4pc had switched from gold to silver. Only one in 100 said they had sold all of their holdings of the precious metals while 0.7pc had moved from silver to gold.
The survey was conducted by BullionVault, which allows individual investors to own gold and silver without taking possession.
The strong support for the metals came despite the survey being conducted in June, just after a major sell-off that saw the price of gold tumble.
Having peaked in autumn 2011 at almost $1,900 an ounce, the price fluctuated between $1,600 and $1,800 for much of the next year, before beginning a sharp decline from October 2012. In June it fell below $1,200 but staged a recovery in July, rising by 7.6pc.
Separate research has found that the top seven best performing funds in July were all related to gold. Gold funds tend to own shares in gold mining companies, whose shares rose more sharply than the gold price, gaining 9.7pc over the month.
The best performing fund was the Way Charteris Gold Portfolio, which climbed by 24.9pc in July, according to Hargreaves Lansdown, the fund supermarket. Next was Smith & Williamson Global Gold & Resources, which gained 19.5pc over the month, and Old Mutual's BlackRock Gold & General fund with a 19.3pc rise.
Adrian Lowcock of Hargreaves Lansdown said the rally was due to indications from America's Federal Reserve that the withdrawal from quantitative easing – so-called "tapering" – would be slower than previously thought.
“Investor confidence returned in July as the Fed confirmed that it would continue purchasing $85bn a month of bonds," he said. "The Fed gave a broad outline of how QE tapering will proceed, reassuring investors that tapering was dependent on continued economic growth.
"Investors responded positively to the comments and gold rallied strongly in July. Continued QE is considered good news for gold as it increases the likelihood of higher inflation at some time in the future."
He added: "Gold shares have fallen a lot further than the actual price of gold this year and in July they also rebounded quicker. Traditionally gold mining companies have been more volatile than the underlying asset as they are a 'geared' investment to the precious metal. They lagged behind as the gold price rose in previous years but have tracked the price more closely this year."
Miguel Perez-Santalla of BullionVault said: "For many private investors gold and silver is a long-term investment choice, and many precious metals investors are still feeling the sting of the last global economic downturn. They are clearly still very cautious about announcements and forecasts heralding signs of life in the economy that could tempt them away from precious metals.
"With this continued uncertainty and combined with the drop in price of precious metals, there is an opportunity to not just hold on to current investments but to also increase exposure further to protect savings and investments against any future shocks."
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Tana GoldFields Company: Gold Starts New Week On Upbeat Note
Investing.com - Coming off the best weekly performance in a month last week, gold futures again traded higher in the early part of Monday’s Asian as traders continued to boost the yellow metal higher.
On the Comex division of the New York Mercantile Exchange, gold futures for September delivery rose 0.43% to USD1,377.10 per troy ounce in Asian trading Monday. The September contract settled up 0.74% at USD1,371.20 per ounce last Friday.
Gold prices added 4.55% on the week, the strongest gain since the week ending July 12. The precious metal has rebounded 16% since hitting a 34-month low of USD1,180.15 a troy ounce on June 28.
Gold futures were likely to find support at USD1,304.50 a troy ounce, the low from August 9 and near-term resistance at USD1,391.35, the high from June 17.
Gold was embraced as a safe-haven play last week amid some concerning U.S. data points that weighed on stocks. In U.S. economic news out last Friday, the Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment for August fell to 80 from 85.1 in July. The August reading was the worst in four months.
The Commerce Department said housing starts rose 5.9% to 896,000 units. Economists expected housing starts to rise to 900,000 units.
Data indicate traders are boosting their long bets on bullion. According to the U.S. Commodities Futures Trading Commission, net long positions in gold futures and options contracts jumped 18% to 56,604 contracts for the week ending August 13.
Demand in India and possible mine strikes in South Africa may boost prices in the next four to five weeks before an industry conference in Denver, Bloomberg reported, citing a JPMorgan research report published last week.
Elsewhere, Comex silver for September delivery inched down 0.06% to USD23.307 per ounce while copper for September delivery rose 0.30% to USD3.372 per ounce.
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Tana Goldfields - Gold or MFs: Which is better for long-term investment?
The liquid funds and debt funds have started giving negative returns over the last couple of weeks after Reserve Bank of India intervened and tightened the liquidity, personal finance expert, Feroze Azeez, Anand Rathi Private Wealth Management said.
In an interview to CNBC-TV18, Feroze Azeez, Anand Rathi Private Wealth Management shared his views on how one should approach gold and mutual fund from a long-term investment perspective.
Should you invest in fixed maturity plans now?
Below is the verbatim transcript of Azeez's interview with CNBC-TV18.
Caller Q: I have been investing in mutual funds with the aim of earning decent returns. I have invested about Rs 5 lakh with a two years horizon. However the current scenario is bad and the liquid debt fund is giving negative returns. What should I do now?
A: As you pointed out that liquid funds and debt funds have also started giving negative returns over the last couple of weeks after Reserve Bank of India intervened and tightened the liquidity.
If you have Rs 5 lakh to invest and the time horizon is about two years then you should stay away from equity, still debt will have some volatility but to my mind liquid fund have given negative returns, not because of inherent nature but there was a change in the method of computation of the net asset value (NAV). I do not think it is going to be a very long phenomena, it is going to be short-lived. Therefore, you should not be too worried as long as your timeframe is two years.
However, the question about where your money should get into. I think there is immense amount of opportunity which has emerged on the debt market side and fixed maturity plans (FMP) which was indicating a return of almost about 8-8.5 percent till a couple of weeks back, today can deliver 10 percent or 9.8 percent. So, can almost have a post tax return of about 9 percent, which is as good as, for example like 13 percent fixed deposit (FD) if you are in the highest slab, almost like 11.8-11.7 percent FD. Therefore, any of us should miss this opportunity which is an outcome of RBI’s liquidity tightening.
Moving on the riskier asset classes on the debt side space on the short-term fund my best pick would be the Templeton India Short Term Income Plan , on the dynamic fund the best plan would be SBI Dynamic Fund and on the income fund category IDFC Income Fund. Having said that there is going to be volatility on the way over the next year-year-and-a-half but if you can stick to your timeframe so you will beat inflation by handsome margin going forward.
Caller Q: I want to begin investing in mutual funds and gold considering that they are down in value currently. Please advise on which schemes are preferable.
A: In my opinion gold as an asset class is not an investment asset class going forward because it will give immense amount of trading opportunity. However, I am not a huge fan of gold for different reasons. I know gold would have bounced back from its lows but it is predominantly due to the currency depreciation. Therefore, going back to September 2011 when it touched the peak in dollar terms; if you assume the same currency rate then gold today should not have been at Rs 28,000 per 10gm but should have been at Rs 20,500 per 10gm, which to my mind would be a low level. I think currency has attributed significant portions of these gains. Therefore, I do not think gold would be a very wise investment at least from couple of year perspective.
Coming back to mutual funds, which have got beaten down in the recent time, there are debt mutual funds which have got beaten down. If somebody is starting up then should look at three equity funds and two debt funds. The three equity funds would be ICICI Prudential Focused Bluechip Equity Fund , which is ranked well in our ranking methodology. We have specific ranking methodology which takes care of lot of statistical tools, so ICICI Focused Bluechip, UTI Opportunities Fund are two largecap funds and in the midcap and smallcap space look at SBI Emerging Business Fund , which has done well and it is ranked on top in that category and on the debt side if you have risk appetite then take the volatility and forgetting it is going to be at least half as volatile as an equity fund but if you have the timeframe right then IDFC Income Fund and HDFC Income Fund could do the trick for you.
Q: When you say timeframe, you are calling for a five year investment plan?
A: No. On the debt side my recommended timeframes would be about a year-and-a-half and for equities the holding period should be three to five years in Indian context is long-term.
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