Investment managers still don’t get gold

Bloomberg: “Investment experts see opportunities ranging from dividend-paying stocks to crypto lending platform Aave.” Not one of them mentioned gold or silver.

Bloomberg posted an article this evening, having asked four wealth advisors how they would invest a $100,000 portfolio. Putting to one side the lady who only invests in cryptos (I hope no one takes her seriously, because that’s not investment — it’s outrageous speculation) none of the other three mentioned gold.

The chart below compares gold with the S&P since January 2023.

Both gold and the S&P more or less tracked each other until 25 February this year, when the S&P took a tumble. Until then, performance-oriented investment advisors could, indeed should have advised investors to start looking at gold, even putting a toe into the water. At least that would have been some protection when equities took a 20% tumble, finally selling off on Trump’s 2 April tariff fiasco.

That pushed the S&P to a low point, while gold recognising increasing dollar risk soared to test $3450 briefly.

Now there’s no question about it. Gold is outperforming equities, and equities are losing upside momentum. Yet Bloomberg’s esteemed advisors stubbornly persist in ignoring gold, and even the miners. When will they adjust their portfolio allocation to take account of reality??

Conclusion: The message gold is sending is clear. The risk of a dollar credit crisis is mounting, and equities are the wrong place to be. Even bitcoin is losing momentum compared with the Magnificent Seven:

I give all Bloomberg’s chosen investment advisors nought out of ten.