GOLD
Preparing for the next gold rush Despite stagnate gold prices amid a cryptocurrency threat, Fat Tail Investment Research gold investments editor Brian Chu believes a market correction beckons and there’s never been more reason to stick with the investment mainstay.
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he constant commotion that surrounds cryptocurrency and its wider fanfare has thrown the resolute gold market into the limelight. Investment analysts see a future for cryptocurrency as a long-term store of wealth, which some believe could usurp gold’s position as a portfolio backbone. Stagnating prices haven’t helped gold’s cause in 2021, yet the market is still trending at three-year, five-year and 10-year highs. It’s been easy to forget that only a year ago, gold topped $US2000 ($2697) per ounce for the first time ever. Gold hasn’t earned a reputation as an investment mainstay for nothing, and according to Fat Tail Investment Research gold investments editor Brian Chu, it’s important to not get carried away by the
crypto euphoria. “I believe that there is a lot of merit in investing in cryptocurrencies but as to the claim in the crypto camp that gold is finished, where the central banks are calling gold a ‘barbarous relic’ and that cryptocurrencies are going to replace gold, I politely and respectfully disagree,” Chu says. “I want to point out to the people who are of the same viewpoint as me, who are invested in gold and are wondering, ‘Have we done anything wrong? Should we change sides? Should we abandon gold?’, I emphatically say no.” Starting his investment journey during the 2013-14 gold bear market, Chu has accumulated enough funds to turn his investments into a full-time career. Chu leveraged his investment success
Fat Tail Investment Research gold investments editor Brian Chu.
and capability to establish the Australian Gold Fund in August 2019, which he says is outperforming the ASX gold index by 15 to 20 per cent per annum. He believes that despite gold’s current languor, the market will rebound as banks choose to step in. “I will disclose that I have started investing in one cryptocurrency ... but I am still predominantly invested in gold, and I will remain so because the central banks have begun to taper their currency supply,” Chu says. “For example, the Reserve Bank of New Zealand, they raised interest rates (in October). So, the central banks are starting to act on trying to normalise the monetary and economic cycle. “The talk of raising interest rates normally puts a dampener on gold but after
The best run gold mining companies tend to pounce on competitors during lean times.
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