Gold Prices Can Double in 3 Years: Portfolio Manager

Monday, 23 Nov 2009 | 3:12 PM ET

Stocks climbed on Monday as the dollar pulled back and gold hit a new record above $1,170 an ounce. John Hathaway, senior portfolio manager of the Tocqueville Gold Fund, believes the precious metal has room to run higher.

Golden Fund Heading Higher
The Tocqueville Gold Fund is up nearly 680 percent in the last ten years. And even as gold continues to hit new highs, sr. portfolio manager John Hathaway says it's poised to head higher.

“I wouldn’t bet on anything in the next couple of weeks, but in the next three years, [gold prices] could double,” Hathaway told CNBC.

Hathaway said investors will migrate to gold as they become more uncomfortable with paper assets.

“It’s not just the dollar, it’s all currencies—paper currencies are under suspicion worldwide,” he said.

“People want real assets because they see what the central banks are doing—they’re basically doing everything they can to debase currencies to deal with the deflationary issues that are troubling everyone.”

Hathaway said approximately 90 percent of his fund is in gold shares while 10 percent is in the physical commodity.

“Shares give you a better return because they’re long-dated options on the gold price,” he said. “And if they do a good job managing their business…the better companies can give you better returns than the metal.”

Tocqueville's Top Holdings:


Newmont Mining

Ivanhoe Miners

Osisko Mining


Other Market Persepctives:

CNBC Data Pages:

CNBC Slideshows:



Hathaway and his family own shares of GOLD, NEM, IVN, OSK.TO, GG, via owning the TGLDX fund.



  Price   Change %Change