Fund Managers Buy Gold, But Silver Set to Outperform

Hedge funds reversed their short positions towards gold in December as safe haven demand increased. But silver is predicted to outperform

David Brenchley 15 February, 2019 | 7:26AM

Gold, Silver, Gold price, bullion, safe haven

In mid-2018, we reported hedge fund managers had upped their short bets against gold to all-time highs. And for retail investors, an ongoing allocation to the precious metal is prudent. That’s especially true in the current market environment - as proved by the multi-asset fund managers getting in on the act.

After a strong recovery from 2016 lows, last year was one of headwinds for the gold price. A stronger US dollar, in which the metal is quoted, and continuation of the US Federal Reserve’s interest rate hiking programme combined to send the price down 11% in the year to mid-August.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Merian Gold & Silver A GBP Acc18.47 GBP-0.10

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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