From the UK Telegraph:Commodities enthusiasts are investing five years too late, according to legendary fund manager Anthony Bolton.
"The best time for commodities was in 2006, when the whole world was growing above trend," said Mr Bolton, who manages the Fidelity China Special Situations investment trust.
"Western economies are anemic at the moment, and I am not sure emerging market growth is enough to keep commodities going.".
"Commodities are measured in US dollars and the US dollar has been weak for the past couple of years. If commodities were measured in a stronger currency, the recent rallies might have been different."
The exception to this rule, according to Mr Bolton, is gold. He said he considered it a good investment while the West was experiencing slow growth.
"Gold is more like a currency than a commodity," he said. "Only a small fraction of gold mined is used – for jewellery and the like. The way it is held as an asset in central banks is not a feature common to other commodities.
"Almost every country has a big budget deficit at the moment so it is in their favour to see their currency depreciate. Countries hold gold as a protection against that."
Chinese investors have also started to take an interest in gold, he said, where previously they were buying American bonds........read in full
I read your post . it was amazing.Your thought process is wonderful.
ReplyDeleteThe way you tell about things is awesome. They are inspiring and helpful.Thanks for sharing your information and stories.
Commodity Tips
Gee shucks, thanks. Hopefully I am adding to the conversation and waking people up to the evils of Paper. Marco Polo returned to Europe in the 13th century with tales of the people of the East using paper as money and he was laughed at. Who's laughing now that the East is buying real money, gold & silver with paper - and those in the West are taking that paper and swapping it for gold and silver. The circle is complete.
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