Goldminers are likely to fare better over time than exchange traded funds(ETFs) that track the metal’s price, according to John Wong, manager ofinvestment trust Golden Prospect Precious Metals (GPM.L).
In a Citywire video interview, Wong says miners offer investors more‘leverage’ on gold than ETFs, as well as the prospect of a growingincome.
He also points out that the precious metal could hit $2,500 an ounce next year, explains the impact of a stronger dollar on gold prices, and says silver may surpass the highs to which it rose earlier this year.
Golden Prospect Precious Metals, which Wong runs alongside fellowmanagers Will Smith and Ian Francis, has returned a massive 460% in thepast three years, while the S&P GSCI Precious Metals index, abenchmark, has only risen 90.5%.
Over the same period, the £59 million trust’s net asset value (NAV)has gained 236%. The shares trade at a 0.6% premium to the trust’s NAV,somewhat higher than their average discount of 6.3%.