While fears in the gold market are overstated, mining company stocks offer a better play, Gemma Godfrey of Brooks Macdonald Asset Management said Wednesday.
On CNBC's "Fast Money," she said that there wasn't much risk in gold from Cyprus selling its hoard.
"First of all, Cyprus's holdings of gold are minimal, so that won't be a significant impact. Secondly, there is this accord with European central banks whereby they are limited in the amount they are allowed to sell to 400 tons a year," she added. "So for those two reasons, we think that the risks are overblown."
Godfrey added that gold miners made more sense.
"We think equities as opposed to physical gold, and the reason for that is the search for yield," she said.
"You could still see selling because gold is not giving you that yield, which investors are so desperately looking for, whereas if we look at the miners, not only are they able to give you dividends, but they actually have been factoring in a lower gold price and cutting their costs. They've cut their cap x, which is going to protect their margins."
Godfrey also said that longer-term dynamics were positive for gold as central banks around the world look to diversify their foreign reserves in the "era of easing, which is going to devalue their currency."