LONDON, 24 September 2011 - Analysis from BullionVault features today in a detailed report on how the leading gold-mining investment funds are failing to outperform the bullion price from The Daily Telegraph, the UK's best-selling quality paper.
"All that glisters is not gold," writes personal finance editor Ian Cowie, explaining how "even after recent setbacks, bullion has weathered economic storms better than most means of storing wealth" - including the best actively managed gold-mining equity funds.
"BlackRock Gold & General is rightly tipped as a great gold-mining fund but it's a very different beast to physical bullion," Cowie quotes Adrian Ash, head of research at BullionVault - which he also notes "is the world's biggest online gold investment service, holding metal worth more than $1bn."
"[Mining equity's] recent underperformance says that it's not inflation but the threat of deflation - of bank failures, default and the destruction of creditors - which is driving gold prices higher," Adrian continues.
"It doesn't help that mining shares carry management, stock market and geopolitical risk. Easier exposure to gold itself can now be had through exchange-traded funds [ETFs]."
That said, The Telegraph's personal finance editor is holding onto his own shares in Blackrock. You can read his personal view - which quotes Adrian alongside senior asset allocation experts and fund managers - on his Telegraph blog...
Gold bullion - Buy online at live gold prices.
