Gold Investment: Should You Buy Gold Or Gold Stocks?

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He (Senior Fund Manager, Peter Major of South Africa's Cadiz Asset Management) argues that, for an investor with a long-term, buy-and-hold strategy, who wishes to have gold exposure, it may be more sensible to be holding gold bullion.

Weighing up the merits of a gold investment is a tough one. A fund manager asks whether it is worthwhile overcomplicating the decision by buying gold mining companies, as opposed to investing in gold bullion through a gold exchange traded fund (ETF). Although Major’s comments were primarily aimed at the South African investment sector, the remarks have worldwide validity.

Senior fund manager Peter Major of South Africa’s Cadiz Asset Management told Mineweb radio that “all the gold mining companies are battling to be a better investment than just buying pure gold”. He is doubtful whether the gold miners have demonstrated this convincingly.

He argues that, for an investor with a long-term, buy-and-hold strategy, who wishes to have gold exposure, it may be more sensible to be holding gold bullion.

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