Monex Financial says it is taking advantage of the recent downturn in the price of gold to take further long positions on the precious metal for institutional clients. The firm’s Tokyo outpost which oversees the deployment of over $12 billion of client capital says it remains convinced of the integrity and sustainability of the secular bull market in gold.

The metal’s fortunes this year have been a stark contrast to those it has endured over the preceding 4 years. Since reaching a high of $1931.00/oz in 2011, prices drifted to a nadir of $1080.00 last year before rebounding to trade sideways until the Federal Reserve raised US interest rates for the first time in a decade in December.

Prices had jumped by as much as 21% before the current downturn and the firm says the metal’s fundamentals are solid despite the raised likelihood of another 25 basis points hike in the Fed Funds rate.

“Clearly, the metal is bid because, ultimately, investors simply don’t believe that the world’s central banks are capable of creating the kind of growth their economies need without taking drastic measures,” explained Monica Freeman, chief markets strategist at Monex Financial.

“They’ve tried quantitative easing, they’re currently experimenting with negative interest rates and it rally is anyone’s guess what they’ll try next but, whatever it is, it will be good for gold prices.”

Monex Financial would not be drawn on the percentage of total client capital accounted for by gold-related investments but Freeman said they consisted of physical bullion, ETF holdings and mining stocks.

About Monex Financial
Monex Financial is a privately held, fully independent investment and wealth management leader, with retail operations based in Toronto, Canada and corporate trading division headquartered in Tokyo, Japan.

From our offices in Toronto the capital city of the province of Ontario and financial and business capital of Canada, we serve private individuals and families from N. America to Europe and with our corporate trading division strategically located in Tokyo, Japan, we have unrivalled access to Asia’s high yielding emerging markets, access to corporate resources, private equity and global mergers and acquisitions.