Investors seek safe haven in gold

Investors scared away by shaky equity markets have been mining the gold market, but financial advisers are mixed as to whether the investments in the precious metal are a long-term play.
SEP 25, 2008
By  Bloomberg
Investors scared away by shaky equity markets have been mining the gold market, but financial advisers are mixed as to whether the investments in the precious metal are a long-term play. Since the financial markets began their descent Sept. 12, the price of an ounce of gold has increased $136.16, or 18.2%, to $882.63 at the close of trading yesterday. Gold prices had risen 5.9% year-to-date. Meanwhile, the value of the dollar declined 4.5% on the euro to $1.46 at the close of trading yesterday. “I think the price increase in gold is a panic move,” said Roman Franklin, an adviser at Franklin Financial Planning Inc., a four-year-old firm in DeLand, Fla., which manages $9 million in assets. “Gold made this climb recently as part of the fallout that has resulted from investor perception of an economic crisis.” But Steven W. Medland, a partner and principal at TABR Capital Management LLC in Orange, Calif., which manages $150 million in assets, feels that a government bailout package will make gold investing a safe bet. “I think that a bailout package will eventually cause significant inflation in the economy and it may take a long time to work its way through the system,” he said, noting that he suggests that clients have a 5% exposure to gold in their portfolios. “People are right to buy gold at these levels to hedge that risk,” Mr. Medland said. For the full report, see the upcoming Sept. 29 issue of InvestmentNews.

Latest News

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

Goldman gets shareholder backing on $80M executive bonus packages
Goldman gets shareholder backing on $80M executive bonus packages

The approval of the pay proposal, which handsomely compensates its CEO and president, bolsters claims that big payouts are a must in the war to retain leadership.

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a husband-wife tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.