Fidelity Manager Plans to Reinvest in Gold Amid Market Volatility

Fidelity International portfolio manager George Efstathopoulos recently sold most of his gold holdings just days before gold prices experienced their largest drop in four decades. According to Jin10, Efstathopoulos is now preparing to reinvest in gold. He stated, "If gold prices see another 5% to 7% correction, I will make significant purchases. Many market bubbles have been deflated due to this decline, yet the structural, long-term rationale supporting gold's strength remains solid." Efstathopoulos manages approximately $3 billion in Fidelity's income and growth strategy fund. He believes that the factors driving gold prices to record highs are still in place, citing persistent inflation and a weakening U.S. dollar as additional drivers. Last year, the fund he managed achieved a 20% return. Efstathopoulos primarily gains exposure to gold through ETFs, ETCs, and gold mining stocks. He plans to increase the proportion of gold in the fund back to around 5%, emphasizing, "We aim to buy on dips because, from a diversification perspective, gold enhances the robustness of an investment portfolio."