Jaspal Phull: Investors Will Turn to Gold

September 27, 2011 James Heinsman Hedge Fund News

According to a manager at Stenham Asset Management, gold will continue to be a reliable haven despite the recent falls.

Yesterday, gold experienced the largest monthly slide in over three years, as a result of increasing pressure from a major sell-off in commodity markets.  Still, the metal has benefitted throughout a time of unease caused by the Swiss National Bank’s decision to limit the rise of the franc.

According to Jaspal Phull, portfolio manager for the Stenham Global Resources Fund of hedge funds, “The scenario for precious metals is bullish over the long term given the uncertainty out there. As other safe havens such as the Swiss franc are cut off, investors will potentially turn to gold. It is behaving more like a currency than a commodity, and it can’t be manipulated.”

He added: “if you look at the concerns out there, I don’t think we’re in a bubble. Investors’ interest is gold in high, but it is still insignificant compared to other assets. The gold price has moved higher very quickly. Therefore in the shorter term, you may see profit-taking as investors look to cash in on their more liquid investments.”

Financial Crisis, Global Sell-Out, Gold, Hedge Funds, investments,

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