Merrill Lynch Investment Managers MLIM highly rated MST World Gold and Mining Fund has seen a rise of 129% in US dollar terms over three years to the end of May 2002 - a return which compares very favorably to MSCI World Index which fell 19%. The price of gold hit US$327 at the end of May compared to a low of US$265 in July 2001, a rise that is expected to continue according to Evy Hambro, manager of the MST fund.
Gold traditionally does well in economically uncertain times, particularly when investor sentiment is affected by geopolitical issues, he says. World gold production is peaking, which coupled with increasing demand, suggest that...
