Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
An account already exists for this email address, please log in.
Fund of the week: stick with BlackRock's gold fund
We've been fans of the £1.5bn BlackRock Gold & General Fund for some time. But should you hold on to your position in it now that its manager of ten years is leaving for a 12-month sabbatical?
Investing in gold, mining and precious metal stocks, we've been fans of the £1.5bn BlackRock Gold & General Fund here at MoneyWeek for some time. Up 123% over five years, it's easy to see why. But should you hold on to your position in it now that its manager of ten years, Graham Birch, is leaving for a 12-month sabbatical?
We'd cautiously say yes. Birch's replacement, Evy Hambro, is hardly inexperienced he's part of BlackRock's 14-strong natural resources team, managing $20bn worldwide. And he has run BlackRock's offshore World Gold fund alongside Birch for some time.
So although "it is always a little disappointing when a good fund manager takes time out of the industry, we feel confident that BlackRock's team can continue to do a good job for investors in Mr Birch's absence", said Stuart Goodwin at Hargreaves Lansdown.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
The gold price is currently hovering below $900 an ounce, but Hambro thinks it will rise sharply. Production problems mean demand for gold, which is rising among nervous investors looking for hard currency, won't be met. He tells The Daily Telegraph: "Gold production fell last year and may fall further in 2009. This is partly due to the lack of exploration success by the gold mining industry, which discovered 15 million ounces last year, compared with production of 80 million ounces."
As continued fears over the world's paper currencies and the state of the economy push the price of gold higher, gold miners, which remain cheap compared with bullion, should take off.
Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
