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Global Gold Strategy For Portfolio Managers

By Janine Hughes


Fund managers focus on making money by investing in financial market instruments that can be quite complicated. There are multiple independent but connected asset classes that have exposure in the varied actions contributing to the functioning of national economies. These various nations economies are part of the engine that drives the global economy. Many professional money managers use their skills to profit from these various actions by setting up global gold strategy type portfolios.

The various nation states economic makeups vary in many ways including by complexity and size. Some countries create wealth by investing heavily in the service industry for a significant portion of their national earnings. The service sectors encompasses many disciplines and includes the vitally important retail and entertainment industries.

Some countries are known for their manufacturing dominance on the global stage. In these countries manufacturing activities are responsible for the creation of many jobs. The industry also supports many businesses, large and small. This industry is known for heavily investing in new technology to aid the manufacturing process. They are often net exporters of products leaving the factories and other places where industry thrives. These products are often exported to all four corners of the globe.

Manufactured goods vary in many ways including by sophistication and levels of demand and supply. Manufacturing related business interests are also very different and are often distinguished by manufactured product type. For instance, manufacturing companies that produces cars are quite different from those that manufacture cement. Although both products are exported to many different countries the involved businesses have vastly different makeups.

Some countries derive must of their foreign exchange earnings from the mining industry. Some nation states are blessed with mineral wealth. They often put out to tender projects that require specialized business entities to bid for exploration, mining and extraction rights. The mining industry focuses ultimately on taking stuff out of the ground. Many of the extracted minerals are for the export market.

Many countries are agricultural producing nations. Many countries consist of large tracts of land dedicated to farming practices. These farming entities, clear, plant, tender and harvest many different types of foods for public consumption. Some of these agricultural products are in great demand and are considered as delicacies in wealthy countries located in various regions around the world. Other harvested produce are used by all in society and are often called stapled foods.

Many sectors within national economies are dominated by the private sector. The private sector is made up of businesses specializing in technology, health care, finance, the manufacturing industry and agricultural production. Many of the involved businesses are known as conglomerates. They often have many specialized divisions within the same companies and operate on an international scale. Many are public companies with shares traded on global exchanges.

The global economy consists of sovereign nation states economies. The national economies are made up primarily of highly specialized segments. These various segments are owned and operated mostly by the private sector. Many of the private sector business entities are publicly listed companies that issue common stock. The common stock can be traded by institutional and non institutional investors.




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