Sebastian Lyon on gold and BBC on the Fed

Personal Assets Trust: http://www.investegate.co.uk/personal-assets-tst---pnl-/rns/half-yearly-report/201311211642576716T/

"Recent weakness in the price of gold has been unwelcome, but just because an insurance policy does not pay out for one year in thirteen it does not mean we should not hold it. The opportunity cost of holding gold is now low. Negative real interest rates are here to stay. Beggar-my-neighbour policies, reminiscent of the 1930s, instigated by central banks to keep their currencies competitive will lead to an on-going debasement of paper currencies. The rigging of financial markets by central banks will not end well. Gold, therefore, is not a short term trade but long term portfolio insurance."

I don't know if I should be buying something.

Just listening to this too:  http://www.bbc.co.uk/radio4/  Simon Jack

PNL Personal Assets Trust - some guidance on why I own gold

There were two views on the gold price dropping down today (PHGP down 2.5%):

- on the one hand the gold bugs point to a 'paper-based' assault on the gold price last night: http://www.zerohedge.com/news/2013-09-12/vicious-gold-slamdown-breaks-gold-market-20-seconds?source=email_rt_mc_body&app=n

- on the other hand the gold doubters point to the increasing likelihood of the Federal Reserve tapering off its quantitative easing. In this BullionVault piece analysts suspect more price falls with little chance of this being offset by Indian Jewellery buying or inflation picking up
 https://goldnews.bullionvault.com/gold-price-091220131

Sebastian Lyon at Personal Assets Trust (PNL) said in an interim management statement (August 16):