August 9, 2017 9:41 am

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Charlie Morris, Investment Director: Gold is a safe haven in a normal crisis. That would typically see growth slow and interest rates fall. Traditionally, bonds are a safe haven. It may surprise you to hear, but gold is essentially a bond that responds to inflation. Gold also performs when inflation is rising and bond yields are falling.

My mantra is that: Gold is a zero-coupon, ultra-long dated, inflation-linked bond, with no credit risk that was issued by God. In my opinion, the crisis we may face in 2017 isn’t necessarily a recession, it’s the potential for interest rates to normalise as the market rejects stimulus and QE. Interest rates will start to rise.

My track record in gold is good. I was a bull from 2002 until early 2013. I then turned bearish until February 2016 when I believed the bear market had ended. I still believe that. However, I do not see evidence that gold will surge for a sustained bull market quite yet. But I can see a rally back to the top of the range, and perhaps more. For that reason, I have selected ideas and themes around gold rather than gold itself. These include the miners, platinum and South African Equities.