In a statement, the trust, which is run for private investors and aims to primarily protect as well as to increase its shareholders' funds over the long-term, said its NAV per share fell by 5.1% in the year ended
The trust's share price fell by
While the trust has previously said that its investment style tends to lead to outperformance in falling markets and a lag in sharply rising markets, the investment adviser said that to actually lose money calls for a full explanation.
"A year in which Greek government bonds rose by 50% and
"Others, such as Coca-Cola and
"But where did we actually lose money?"
He pointed to a fall in the trust's index-linked bonds, and said gold "became a four letter word" as it suffered its biggest sell-off since the crisis in 2008. "
"We are not 'gold bugs', committed to holding bullion for ever. But we believe that the preconditions for a secular bull market in gold remain in place. Negative real interest rates in all major currencies are likely to prevail for many years to come and the only prospect of positive real interest rates is from a spell of deflation, which the Federal Reserve is determined to avoid,"
"We are in the midst of an extraordinary and unprecedented monetary experiment which is unlikely to end well,"
Most Popular Stories
- Islamic State Obliterating Cultural Landmarks in Mosul
- The 2014 Fastest-Growing 100
- 'Lucy's' Super Powers Tops 'Hercules' at Box Office
- VW Site Could Mean Another 2,000 Jobs for Chattanooga
- RV Sales See Highest Increase Post Great Recession
- Report: China to Declare Qualcomm a Monopoly
- Eid al-Fitr Celebrations Mark End of Ramadan
- Oppression of Women Cripples Africa: Obama
- Insecticides Permeate U.S. Food, Water Supply
- Anarchy, Chaos Sweep Across Libya