Page 25 - ISQ January 2021

JANUARY 2021

All that Glitters is Gold

Jeremy Batstone-Carr, Interim European Strategist, Raymond James

Amidst all the extraordinary action in the world’s financial diminished by any government or central bank.
markets over 2020 there were many stand-out As all must be aware, gold has enjoyed a special place in people’s
performances amongst the various asset classes and hearts for centuries. It has been hoarded and stolen. People have
individual investments. But while many will have a mere killed for it and wars have been started over it. They still are.
Egyptian Pharaohs were entombed with their golden treasure.
moment in the spotlight before flickering and burning out,
The Spanish conquistadors came to get rich under Mayan skies,
one ultra-long term asset stands out, its lustre pillaging the New World as they did so. The Californian gold rush
undiminished, gold. The yellow metal price increased by prompted people from around the world to chase the dream of
24% over the past twelve months, its best annual boundless riches. Those who sold the picks and shovels to pros-
performance, in US dollar terms, in a decade. pectors grew wealthy for sure, but for those who really did strike
lucky also struck rich, very rich.
There are other assets regarded generally as safe-havens. Those
which during times of uncertainty, or insecurity, or economic In the modern era, gold’s story really begins back in 1971,
and political hardship and even war provide somewhere safe the year the US dollar departed from the gold standard.
for investors to protect their wealth, but none has the unique
appeal of gold. This is nothing new. Gold has been regarded
As long-term track records go, there can be few alternative assets “
In the modern era, gold’s story really
the world over as an investable asset for more than 4,000 years.
capable of maintaining their purchasing power so well. begins back in 1971, the year the US
dollar departed from the gold
Over and above its value as a store of wealth, gold is widely regarded
as a truly global currency. It possesses intrinsic value, in addition to standard. ”
which it is both beautiful and durable, undiminished as other curren-
cies are by some alien alloy. These attributes have, throughout time,
served to render gold superior to all other mediums of exchange.
Furthermore, and importantly, it is not “backed up” or in some way

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