Doug Groh: Gold is Doing Well, but Investors Aren't Paying Attention | Summary and Q&A

TL;DR

Tocqueville Asset Management offers investors exposure to physical gold and gold mining equities to hedge against monetary policy. Gold prices are expected to rise due to factors such as credit-driven economies and geopolitical uncertainties.

Key Insights

• 🏅 Tocqueville Asset Management manages $11 billion, with a significant portion invested in gold and gold mining equities.
• 🏅 The fund provides exposure to physical gold for hedging purposes, as well as gold mining companies for potential value creation.
• 🧘 Criteria for investing in gold companies include quality assets, effective management, and financial position.
• 🖕 The portfolio includes bullion, larger mining companies, royalty companies, silver companies, mid-tier companies, and a smaller percentage in exploration companies.
• 🏅 Gold prices have remained range-bound due to investors' focus on other investment opportunities, but gold still offers a hedge against monetary policy.
• 😮 Factors such as credit-driven economies, deficits, and geopolitical uncertainties are expected to support a rise in gold prices in the long term.
• 🥺 A volatile geopolitical environment, influenced by factors like the US president's agenda, could potentially lead to a dramatic event that boosts gold prices.

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Questions & Answers

Q: What criteria does the fund follow when investing in gold companies?

The fund looks for companies with good quality assets run by effective management teams. Financial strength and the ability to access capital markets are also important considerations.

Q: Can you provide specific examples of stocks included in the fund?

The fund includes royalty companies like Franco-Nevada, Osisko Royalties, Royal Gold, and Wheaton Precious Metals. Silver mining companies like Pan American Silver are also part of the portfolio.

Q: Why have gold prices not seen significant upward performance despite geopolitical tensions?

Gold prices have been range-bound due to investors seeking opportunities in other equities such as small-cap stocks, biotech, and cryptocurrencies. However, gold still serves as a hedge against monetary policy and has performed well in the longer term.

Q: Where do you expect gold prices to go in 2018?

Gold prices may break through the $1,365-$1,370 mark by the end of the year. Geopolitical events or economic factors such as deficits could be catalysts for a rise in gold prices.

Summary & Key Takeaways

• Tocqueville Asset Management manages approximately $11 billion, with $1.7 billion invested in gold and gold mining equities.

• The fund provides investors with exposure to both physical gold and gold mining companies, offering a balance between hedging and potential value creation.

• The portfolio consists of bullion, larger mining companies, royalty companies, silver companies, mid-tier companies, and a smaller percentage in exploration companies.