Below is an update on our Gold holdings in the Carrington portfolios. We have been very keen to hold gold in our portfolios and optimistic about the potential return they could provide. However, the holding has not served us as well as we would have hoped over the past year. That said, we feel that all of the drivers are still in place for higher prices.
The Chinese New Year (which is February 10th) normally increases seasonal demand and the price of gold. The prices of other base metals have risen quite strongly recently and in particular Iron Ore has risen within the last few weeks. Platinum and Palladium are also on the rise. Whereas gold has been static for some 2 months now.
Gold rallied strongly in November only to fall back to the long term support again.
Physical gold traded on the Shanghai Gold Exchange hit a record high this week, with 19,500 kilograms of gold changing hands on Monday.
We intend to hold our positions until after the Chinese New Year, but if there is no significant improvement in the price of the underlying physical metal we will cut our exposure significantly and reallocate this to another asset class.
Check back for our next investment update.