Gold investments are back in the news thanks to acclaimed podcast S-Town, in which a missing fortune in gold bars is an integral piece of the real-life mystery.
Going for gold
You’d be surprised how rare it is for investment companies like Moyes to be asked by our clients about investing in gold. However, with the political and social upheavals across the globe during the past 12 months, gold has found favour again as it often does in times of economic instability. As currency values fluctuate, gold is a certainty and seen as a hedge against the turbulence of the markets. The stability of this tangible asset makes gold very attractive when investors are nervous about the resilience of their portfolios. However, while it can be a safe investment in the short term, a rise in the price of gold is historically followed by a long period where it languishes.
The true benefits of an investment of this kind are gifted to those who looked to the future and took a gamble on gold. Anyone who made that kind of investment ahead of the 2007 financial crisis would have been in an incredibly strong position as the markets went into meltdown. But considering how mercifully rare such a catastrophe is, it’s hardly the kind of decision made with skill and planning. Even those who made money would admit it was dumb luck at best. When you are putting together an investment portfolio, the key to making it work most effectively is to diversify and look to high-performing funds that endure.
Nuggets of wisdom
At Moyes Investments, we know that our customers need a robust, long-term strategy that will see their portfolio help them live well into their twilight years. If you follow John B. McLemore and buy up gold bars to hide until you need them, it’s one heck of a risk. Gold is widely agreed to be a ‘speculative’ investment, vulnerable to high peaks and low valleys. So, it would be pure luck for it to pay off just when you need it. Instead, we look to building a portfolio of assets that will perform well over the years leading up to retirement or beyond. Our goal is to help our clients maintain their standard of living, and enjoy all the rewards of a lifetime of work and saving, long into their post-employment years. As such, we wouldn’t look to place a large part of the portfolio on gold. Instead, we’d be using the power of our discretionary fund manager status to be agile in our response to market fluctuation – seizing opportunities to make your investments pay off.
The story of S-Town is complex and riveting – especially as McLemore died without revealing where these infamous gold bars were hidden. It was his rabid mistrust of banks and institutions that motivated his investment choices. But, tragically, it didn’t seem as though John was looking to his own future when he went all-in on gold. We can only hope that if his loved ones ever do solve the riddle of where the bars are secreted the price of gold will be at its peak. Then it might feel as though at least one of John B. MacLemore’s risks paid off.
We can’t promise you Gold but we are certaintly worth a call to make sure your investments are being managed and monitored efficiently. We can be reached on 01638 429975 or [email protected]