Fund Manger: Gold to $3,000
AGF Precious Metals Fund's Ani Markova expects gold to eventually hit $3,000 an ounce. After hitting a record $1,800 last week, the portfolio manager told Reuters that investors should "stay the course" to protect themselves against a volatile market with gold and gold-related equities.
"We think this appreciation will continue, although we may get a little more volatile as we go forward. This is not the end of this rally," said Markova.
Gold's bull run is being driven by instability in the currency markets and "those are the trends we do not see going away in the near term," she said.
Markova expects gold to hit $2,000 within 12 months and $2,400-$3,000 within 2-3 years. It's a stable commodity that cannot be altered by printing money, she said.
She also mentioned that she plans to increase her exposure to precious metals to hedge against expected inflation and oil hikes.
"We're taking some money out of basic materials and deploying it back into gold and silver," she said.
Gold producers are in the best position to realize cash flow from rising commodity prices, and that is why the fund's portfolio is focused on large and mid-tier companies producing cash, Markova said, adding that Eldorado Gold and Goldcorp are her preferred stocks.
Markova also added that Fortuna Silver Mines Inc. and silver miner Fresnillo were attractive stocks.
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