Precy Dumlao, Opalesque Asia: San Antonio, Texas based Meridian Fund Managers, CEO and Chief Investment Officer and Investment Team Leader of the Meridian Global Funds, Frank Holmes said he is sticking with gold despite the recent drop in prices on news that an unidentified hedge fund was forced to liquidate on all metals.
Holmes said, "The key to gold is moderation. As I said in my book, The Goldwatcher, and often reiterate to investors when I speak at conferences, gold is a volatile asset class and the daily price can be more dramatic than blue-chip stocks. We have always advocated that investors hold a modest 5 to 10% weighting in gold and gold stocks. In other words, we feel strongly that an investor should not try to get rich from the metal."
Last week gold prices fell to more than a seven month low on worries that the U.S. economic stimulus may soon dry up. The yellow metal was under pressure all week from traders seeking riskier investments as the outlook for the global economy improved, fell to June lows. Losses deepened after the U.S. Federal Reserve released the minutes of its January meeting.
It was also reported last week that gold traders were the most be......................
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