“Now Is A Good Time” To Buy Gold – Fidelity Investments

Submitted by Mark O’Byrne  – Founding Partner of  GoldCore

Joe Wickwire, research analyst and portfolio manager at Fidelity investments, presented some very grounded, reasonable arguments as to why one should buy gold at the LBMA Precious Metals Conference in Lima, Peru which concluded on Tuesday.

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Fidelity Investments are a largely family owned mutual fund and financial services company. It is one of the largest mutual fund and financial services groups in the world. Founded in 1946, the company has since served North American investors. This year they were voted best investment company in an online broker review by Stockbroker.com. They have gradually moved up in the rankings from eighth place in 2011.

They currently manage a massive $2 trillion worth of assets. Gold is a diversification and makes up only a small proportion of their overall assets. Thus their pronouncements concerning gold can be regarded as independent.

“I believe that now is a good time to take advantage of the negative sentiment short-term trading sentiment”, Wickwire said as reported by the Bullion Desk:

Wickwire argues that, from an asset allocation standpoint, actual gold market fundamentals are not linked to transitory US stock market volatility or whether or not the dollar moves up or down against the euro or the yen. Those items can be the basis for short-term trading strategies but not for long-term portfolio construction.“I believe that now is a good time to take advantage of negative short-term trading sentiment,” Wickwire said.

He emphasised that, while precious metals may respond to market volatility in the short term, in the longer term the fundamentals are sound.