Missed Commodities? Buy Gold, Says "Britain's Buffett"

INVESTORS who've missed the bull market in commodities should Buy Gold says Anthony Bolton, the highly successful fund manager often called Britain's answer to legendary US value-investor Warren Buffett.

"The best time for commodities was in 2006, when the whole world was growing above trend," says Bolton, quoted by The Daily Telegraph. But "Gold is more like a currency than a commodity.

"The way gold is held as an asset in central banks is not a feature common to other commodities...Almost every country has a big budget deficit at the moment so it is in their favour to see their currency depreciate. Countries hold gold as a protection against that."

Manager from 1979-2007 of Fidelity UK's Special Situations fund, Anthony Bolton now leads the $1-billion Fidelity China Special Situations investment trust. Noting that Chinese Gold Investment has turned sharply higher, he says that "Western economies are anaemic at the moment, and I am not sure emerging market growth is enough to keep [industrial] commodities going."

Looking at the technical Gold Price charts, rather than the fundamentals, "I think not owning gold is a form of insanity, it may even show unhealthy masochistic tendencies, which might need medical attention," said Robin Griffiths, technical strategist at Cazenove Capital, to CNBC last week.

"Although it's been a top performer for each of the last ten years, it's still in a linear trend. Eventually it will go exponential and make more in the last little bit than the whole of the ten year trend," Griffiths said.

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