Family offices should invest in gold as a long-term safeguard against inflation, according to a leading investment manager.
"Anyone that doesn't have a certain percentage of their money in gold really should have their heads tested," Jim Slater, an investor with 50 years experience who owns 35% of natural resource specialists Sector Investment Managers, exclusively told www.campdenFB.com at the launch of Sector IM's Junior Mining Fund. "Family offices should seriously consider gold for their portfolio," he continued.
"Governments are printing money in the US, the UK and several other countries and will continue to do so until the economies show signs of recovery. The immediate outlook is deflation but I think inflation will follow because they will just keep printing money," said Slater. "This is very good news for gold and those investing in it because governments can't print it. The price of gold is likely to go up as investors seek a safe haven."
The relative stability of gold compared to currency or other shares is another appeal for family offices. "The stability of gold as a commodity is attractive to family offices with a longer-term outlook. Investing in gold is a long-term idea," added Slater. But he also warns that not every fund will be profitable and as with every investment, a high level of due diligence is necessary. "The key is selecting companies that are viable," he said.
Is gold the perfect place to be?
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