International Partners has reiterated its advice to investors to buy precious metals after the price of both gold and silver received significant safe-haven bids in the wake of China’s devaluation of the yuan (renminbi) last week.

The devaluation has increased speculation that, rather than being just a move to allow the yuan to trade more freely against other currencies in preparation for possible inclusion in the IMF’s special drawing rights (SDR), China was trying to gain competitive advantage over the US, Japan and other countries in the export market.

“Gold has had a dreadful year,” said Ayumi Soto, Head of Commodities and Energy research at International Partners. “Growing expectations and incessant rhetoric about the timing of a US interest rate increase has made gold and silver look less attractive and driven more investor cash to the perceived safety of the US dollar,” she explained.

The Japan-based boutique investment house cited disappointing official data from the Chinese authorities on their holdings of gold as playing a significant part in the last wave of selling to beset the metal last month. “We think a bottom is forming in precious metals’ prices and, slowly but surely, realization seems to be creeping in that the US economic recovery is weakening to the point where the Fed will be unwilling to hike,” said Soto.

International Partners says it expects a sharp bounce in commodities prices in general, not just precious metals’. “We’re one of the few lone voices at the moment who think there’s a very real prospect of another round of quantitative easing being unleashed by the Federal Reserve next year and that will be very bullish for precious metals,” concluded Soto.

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Their investment plans are designed to consider – among other matters – your short-term cash-flow requirements, time horizons, your retirement plans and any gifting or legacy aspirations you may have. Planning of this precision can only be effected by a personalized approach and this means that yours will be a tailor-made, bespoke plan that will be of no use to anybody else.