Portfolio Management
Gold and Other Commodities
Our clients have started to show more interest in holding commodities, such as Gold and other precious metals. As investment products have become more sophisticated, this has become much easier to achieve.
However, holding these types of assets whether via a pooled investment fund, or physically owning the asset, needs to be considered very carefully.
The basic idea is that there is little differentiation between a commodity coming
from one producer and the same commodity from another producer - a barrel
of oil is basically the same product, regardless of the producer. Compare
this to, say, electronics, where the quality and features of a given product
will be completely different depending on the producer. Some traditional
examples of commodities include grains, gold, beef, oil and natural
gas. More recently, the definition has expanded to include financial products
such as foreign currencies and indexes. Technological advances have
also led to new types of commodities being exchanged in the marketplace:
for example, cell phone minutes and bandwidth.
The sale and purchase of commodities is usually carried out through futures
contracts on exchanges that standardise the quantity and minimum quality
of the commodity being traded.
As the commodity markets have increased, so have the diversity and need for due diligence.
Our Key Skills
Our access to information via investment fund analysis systems, gives us the ability to provide our clients with robust research to help you consider commodity backed investment funds
We have created key professional relationships with specialists in these areas who can provide robust advice and guide your purchases and investments