Tocqueville Asset Management invests in precious metals companies for the long term, looking for names that are innovative and creative in identifying properties and adding value to those properties, says Portfolio Manager and Senior Research Analyst Doug Groh. Geopolitical and financial concerns, as well as market fundamentals, favor gold over the longer term, he believes. In this interview with The Gold Report, Groh provides his analysis of the macro environment for precious metals and profiles seven companies with quality assets that he expects to create value.
The Gold Report: Doug, after the long run-up in the precious metals market for most of the year, October started off turbulently. What is your take on it?
Doug Groh: Gold has had a nice performance through the first nine months of the year, posting a 25% year-to-date appreciation. It’s not unusual for markets to correct in the fourth quarter, and we’re seeing that in gold.
There are a couple of developments to note. One is that gold did really well during the summer months after the Brexit vote. That was somewhat of a surprise to investors; they thought that gold was just a first-half phenomenon this year.
The concern markets have with regard to Federal Reserve policy is interesting since markets actually set interest rates, not the Federal Reserve. Be that as it may, markets are back and forth on their interpretation of comments from Federal Reserve officials.
“MAG Silver Corp.’s Deep Zone discovery is likely to be one of the best this decade.”
Gold has bounced around and was consolidating in August and September. Then British Prime Minister Theresa May’s recent comments that the government had set a deadline to initiate the Brexit process woke up a number of traders. It seems that whatever Brexit uncertainty was priced in …read more