buying gold - a simple question

black_taxi_2

Billionaire hedge-fund manager John Paulson told clients he wouldn’t personally invest more money in his gold fund because its not clear when inflation will accelerate, according to a person familiar with the matter.
Paulson, who has been betting that gold would rally as a hedge against inflation as central banks flood the global economy with money, has lost 63 percent year-to-date in the PFR Gold Fund, said the person, who was briefed on the returns and asked not to be identified because the information in private. The fund, which has shrunk to $370 million, with most of that John Paulson’s own money, fell 1.2 percent in October, the person said.

greatcrested

black_taxi wrote: »

Billionaire hedge-fund manager John Paulson told clients he wouldn’t personally invest more money in his gold fund because its not clear when inflation will accelerate, according to a person familiar with the matter.
Paulson, who has been betting that gold would rally as a hedge against inflation as central banks flood the global economy with money, has lost 63 percent year-to-date in the PFR Gold Fund, said the person, who was briefed on the returns and asked not to be identified because the information in private. The fund, which has shrunk to $370 million, with most of that John Paulson’s own money, fell 1.2 percent in October, the person said.

Which of course is exactly why it might now be good time to buy! 12 months ago, as you point out, would have been a bad time (oh the wonders of hind-sight!).

I'm leaning towards an ETF within an ISA, and possibly a soveriegn or two just for the hell of it now! (how much does a soveriegn cost?)

planteria

greatcrested wrote: »

A gold fund spreading investment round mining companies eg

* Blackrock Gold
* Investec Global Gold
etc

i have the Smith & Williamson fund rather than either of those.

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=TTF33&univ=U

sabretoothtigger

Paulson was forced to sell his gold holdings by his investors cashing out, thats his mistake allowing them to cut and run so easy.

I bet he lost money on sub prime at first and later it went the way he predicted.
I agree the ideal time to buy is when others are not only selling but have no choice, it becomes self confirming but its not changing the reasoning behind a gold holding just the price dynamics
(any company share can go to 10p but it'll still operate however bad people think it is, banks are on sector where belief matters more )