Cover of MoneyWeek magazine issue no 569

Stocking fillers

23 December 2011 / Issue 569

The shares to buy this Christmas

PLUS:

  • Our top ten tipsters of 2011
  • A euro break-up would be good for Britain
  • Why a depression would cheer us all up

Excerpt

High hopes for 2012

Last week I told you I was planning to sell some of my gold. Some readers found that worrying. They wondered if perhaps I no longer have faith in the one thing that has been a core MoneyWeek holding for a decade.

Not so. The problem with my gold – and it is a problem I suspect some long-term readers will also have – is that its pleasing rise over the last few years has meant it has gone from being a smallish percentage of my portfolio to being around 50%. Some people are happy with that kind of imbalance – our own Tim Price, for example. However, I am not blessed with perfect foresight (as regular readers might have noticed). So I want my gold to be my insurance – not the only thing I have. I still think the gold price will go higher from here (financial repression and money printing should make sure of that). I just don’t want to be utterly reliant on it doing so.

The good news, of course, is that MoneyWeek readers in gold have had a good year. It’s been the best-performing asset class out there: up 13%, more than all stock and bond markets and up more against the dollar than any other currency. Readers who wanted to be in equities and took our advice early this year to focus on developed markets over emerging ones will have lost less money than others (as long as they didn’t put money into Europe, of course).

• Read the full editor’s letter here: High hopes for 2012.