Originally Posted by
Skol
I have profited from it. I bought into the (now closed) BT Natural Resources fund about 13 years ago. It's diversified so only has a small percentage in gold no doubt, however the fund has averaged about 18% p.a. during this time and up 30% in the last 6 months. Dividends reinvested. That's enough exposure for me, I'm not greedy, but it's made me what you could call a small fortune.
Punters get creamed all the time by overexposure, and I'm not keen to be one of them. Belgarion is correct that there is demand for some crops following fires and flood but some commodities are being hoarded expecting them to go higher. Have a look at the return on a farm in NZ, it doesn't add up, I've even had farmers tell me that.
I was working with a guy a few weeks back who told me the sad story of his overexposure to property which was the trendy commodity to own up until 2007. Not small losses, massive losses.
BTW, 'The Power of Gold' is on 1 hour later than advertised by the Sky book.