Can you readily access your capital investment when you need it most?
“After the upheaval caused by the COVID-19 pandemic, uncertainty has become the norm for investors and fund managers. As the UK property market – both residential, commercial – came to a standstill earlier this year, the absence of activity led to challenges in valuing property investments with the certainty required. As a result, property funds suspended withdrawals by investors. And until more normal levels of property market activity are seen, investors may continue to struggle to access their capital.”
USAGOLD note: One wonders if the same logic might not apply to any number of funds in the event of another economic emergency. Gopaul makes an important point. He sees the potential for such liquidity breakdowns as an opportunity for gold. Gold, he says, acts as “ballast” in the portfolio in good times and bad. He points to its inverse correlation to other assets as one of its strongest selling points. The $2.7 trillion global market for gold, he says, makes it very liquid “even at times of acute financial stress.”
Repost from 9-23-2020