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.
“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:
Randgold
Newmont Mining
Ivanhoe Miners
Osisko Mining
Goldcorp
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Other Market Persepctives:
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- Global Growth Good for Portfolio: Stock Picker
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CNBC Data Pages:
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Disclosures:
Hathaway and his family own shares of GOLD, NEM, IVN, OSK.TO, GG, via owning the TGLDX fund.
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