The gold price continued to climb in the third quarter of 2019, reaching a six-year high of $1,552/oz. in early September, as macroeconomic and geopolitical uncertainty continued to support the appeal of perceived safe-haven assets like gold.
The use of gold as a potential hedge against extreme market outcomes has long been a key tenet of First Eagle’s investment philosophy.
The Global Value Team shares their current investment thinking and provides a mid-year update on the Global, Overseas and U.S. Value Funds.
We cannot predict what will happen next in economies or markets, but 2018 had the feel of a transitional year. Volatility, which in our view, had been muted for an unexpectedly long period of time, returned in force during the year—first in February and then again in the fourth quarter.
In this paper, we explain gold’s power as a potential hedge, examine its history, consider the advantages and disadvantages of bullion, gold stocks and ETFs, and explore the differences between hed