Precious Metals

Precious Metals Portfolio

What is it for? 

The primary objective of the portfolio is to invest in precious metals to provide diversification and a hedge against inflation and market volatility.  Precious metals have historically held their value and have been considered a safe haven investment in times of economic uncertainty.
 
What does it do? 

A portfolio that invests in precious metals primarily invests in physical or derivative forms of precious metals such as gold, silver, platinum and palladium.  The portfolio will invest in exchange-traded funds (ETFs) or other financial instruments that track the price of these metals.

What you need to know

Why Mole Valley Asset Management? 

  • Expertise in global multi-asset allocation investment.
  • The size of MVAM means that we can invest in the best opportunities regardless of their size, unlike larger investment houses.
  • Fees are fair and transparent, and we align our rewards to the success of our product.

Positives  

  • Suits investors seeking to diversify their portfolio with a safe haven investment to protect against inflation and market volatility.
  • Appropriate for investors interested in having alternative investments with a different asset class in their portfolio.
  • Investors may benefit from the potential for capital appreciation as the prices of these metals increase over time.
  • Money back usually within a week of receiving a redemption request.

Risks

  • The performance of the Precious Metal Portfolio is primarily driven by supply and demand dynamics and geopolitical factors.  With high demand for precious metals, prices may increase, while prices may decrease with low demand.
  • The portfolios in isolation would be categorised as ‘high risk’ in nature because it is highly volatile. The MVAM team will use this portfolio combined with other portfolios to create an investment strategy providing diversity of returns.

We say...

The Precious Metals Portfolio will be focused primarily, but not exclusively, on gold and silver securities, predominantly physical precious metal exposure. The associated risk is deemed to be high due to the concentration in the number of holdings and the price volatility of the underlying precious metals.

This investment is suitable if you are looking for some income from your assets and expect to hold bonds.

You should not buy this portfolio if: 

  1. You are looking for high returns.
  2. You are looking for significant returns against benchmark indices.
  3. Returns will be relatively muted when interest rates are low.

Frequently Asked Questions

Why would I want to invest in precious metals?

Precious metals are often seen as a hedge against inflation and economic uncertainty. They can provide a safe haven during times of market volatility and can act as a store of value in the face of economic uncertainty.

What types of precious metals are commonly included in a portfolio?

The most common precious metals in investment portfolios are gold and silver. Platinum and palladium are also used in portfolios, especially for industrial purposes and due to their correlation with certain sectors.

Do precious metals provide income like stocks or bonds?

Precious metals do not generally provide income like dividend-paying stocks or interest-bearing bonds. Their value tends to come from capital appreciation and their role as a store of value.

What factors can influence the price of precious metals?

Precious metal prices can be influenced by a variety of factors, including economic conditions, geopolitical events, supply and demand dynamics, central bank policies, and changes in investor sentiment.

Is there are preferred time horizon for investing in precious metals?

Precious metals can be used for both short-term and long-term investment purposes. Some investors use them as a short-term hedge during market turmoil, while others hold them as a long-term store of value.

Warning

The value of your investment in this portfolio and the income from it may go down as well as up and you may not get back what you invested.