Making money: what the experts think
● Soothingly boring
The gold price hit a year high of $2,080 per ounce in March, “shortly after you know who invaded you know where”, said Dominic Frisby in MoneyWeek. Since then, it appears to have disappointed: “meandering around the $1,820 mark”, which is about its “one-year average”. In fact, given the strength of the US dollar, gold has performed rather well – certainly compared with many currencies. More importantly, at a time when stocks, bonds and cryptos have all seen big falls, it remains reassuringly “dull”. Gold, in short, is “doing what it’s supposed to do – preserving its value and your capital”.
● Golden slumbers
The dollar will head lower if other countries start to follow the US Fed’s lead and “tighten” by raising interest rates to head off inflation. If it does, “then gold will make a move”, said Frisby. Analysts at Goldman Sachs reckon this is a likely scenario and “have just put a $2,500 yearend target on gold”. It would be nice if that happened, but it’s by no means certain. US monetary policy remains more hawkish than elsewhere, and it’s still “the first port of call for capital in a panic”.
That will not, though, deter me from hanging on to gold. “It’s the one part of my portfolio that isn’t keeping me awake at night.”
● Fine minerals
Jewellery and art have long “captivated” investors, and delivered decent returns for them, said Shivani Vora in The New York Times. But interest in “fine minerals” – beautiful, rare and scientifically valuable mineral specimens
– is also catching on. Christie’s now has two online auctions “dedicated to fossils, meteorites and fine minerals”. And the Masterpiece art fair in London, which opened this week, is also featuring minerals for the first time, with “60 of these rare objects” on display, courtesy of New York’s Fine Minerals International, which sells, buys and mines rare minerals including topaz, quartz, calcite and tourmaline. One reason for the upsurge of interest, said founder Daniel Trinchillo, is that other collectible categories are now so “saturated”. The price point of entry is also “reasonable”. Although the finest examples can sell for millions, you can build an “entry-level” collection “for a few thousand dollars”. Before buying anything, do some homework. Mindat.org is a good place to start.