Why I’m sticking with gold

The recent crash in the gold price will have given many people pause for thought on their gold holdings. But they'd be wrong to dump the lot. Merryn Somerset Webb explains why.

I wrote a letter here in December 2011 saying that I intended to sell down my gold holdings. Some of our long-term readers were shocked. But it made good sense to me.

I'd bought my gold over a decade earlier, when it was trading at under $300 an ounce. As it had risen to over $1,500 it had begun to make up far too high a percentage of my portfolio and that wasn't the no-brainer it was back in 2000. Three hundred dollars was unarguably cheap. Over $1,500 wasn't.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.