October Fund - Blackrock World Gold Fund

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During times of uncertainty gold has always been considered a safe haven and during the current economic crisis this trend has continued. Gold has continuously reached record levels over the past few months and in late September broke the $1,300 an oz barrier.
 
 

The Story of Gold

Gold is a very special metal for many people. It has traditionally been seen as a sign of wealth and the first coins were made from real gold. Up until the mid 20th century the major currencies of the world were tied to gold.  Today the fascination with gold continues. As well as being used for jewellery and for wealth storage, gold has many uses in general industry, and specifically as a vital component in the manufacture of satellites and other space related instruments.
 
From January to September 2010, gold prices have risen by 18% and there are no signs that this is going to stop.  There are many ways to take advantage of rising gold prices, such as literally buying  gold bullion, tracking the gold price using an ETF or through spread betting.
 

How about a Gold Fund?

Another way to take advantage of gold is through a unit linked gold fund.  The Blackrock World Gold Fund, available through Aviva, is a fund which invests in companies whose predominant economic activity is gold mining.  However it's fortunes are not wholly tied to the fortunes of gold. It can also invest in companies whose predominant economic activity is other precious metal or minerals. The fund does not hold physical gold or metal.
The fund invests invests in between 50-80 stocks across large, medium and small companies, spread across the world.

Why?

As well as offering a safe haven during times of uncertainty, investors are looking to gold as a potential hedge against inflation and potential currency weakness.
Despite gold hitting new highs in euro and sterling terms and it's new all time high of $1,300, in real terms gold is still some way below its previous high. In 1980 gold peaked at $850 an oz which when adjusted for inflation, is over $2,000 in today's terms.
 
Gold also offers an opportunity for an investor to diversify a portfolio from mainstream managed or equity and bond funds. A well constructed porfolio will be well diversifed meaning it has exposure to many different investment classes, thus helping to reduce risk in the porfolio.

How?

The Blackrock World Gold Fund is available for Pension, Investment and Savings Products through Aviva.
 
For further information about the fund, please contact us or  download the brochure.