20 October 2025: Weekly Update – Gold’s Parabolic Rise and Portfolio Discipline Category

…when viewed over a rolling three‑year horizon, gold’s ascent looks increasingly parabolic:

Given the strength of performance, we believe a degree of portfolio discipline is appropriate. We therefore took some profits this week, trimming the position in gold across each of the T. Bailey Multi‑Asset funds shortly before it reached its high. This reduction helps keep exposures in line with long‑term strategic targets while maintaining gold’s role as an important diversifier within the funds.

Assigning a clear measure of fundamental value to gold remains challenging: it yields no income and its worth is largely defined by relative confidence in fiat currencies. For this reason, we continue to regard it as an alternative currency, held primarily as a store of wealth and a protector against monetary and political disruption. However, such characteristics also make it vulnerable to periods of exuberance and speculation, which can amplify short‑term volatility.

The current episode bears resemblance to other powerful rallies in recent decades. On a rolling five‑ and ten‑year view, however, the latest rise still sits in the foothills of the major moves experienced in the mid‑1970s and early 1980s.

Accordingly, while a measure of caution is warranted, gold continues to play a valuable role within the T. Bailey Multi‑Asset portfolios - as a long‑term diversifier, an alternative currency, and a modest hedge against systemic risk.