Not lost its shine

Gold had its worst session in 12 years, falling more than 5% yesterday. We believe this correction was mainly technical, as some investors took profits after a stellar year for the yellow metal. In USD terms, gold remains up more than 50% year-to-date.

The “debasement trade” remains indeed firmly in place: with unsustainable debt levels in developed economies, money printing continues to be the path of least resistance. Rising long-term yields and the political difficulty of reining in fiscal spending only reinforce the case for holding real assets.

Since gold itself does not generate cash flows and we find it therefore difficult to value, we prefer exposure through gold miners and mainly invest via the ISATIS Investment Global Natural Resources Fund, managed by our colleagues Boris Cukon and Vincent Vandamme.