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(Kitco News) - Despite the metals current fall, gold historically moves higher in August and September, points out one gold fund manager.
“Typically during the beginning of the year, we see good performance in gold. As we get into the spring months, gold will sell off and in late spring, we typically see the bottom in the year’s price on gold,” said Doug Groh, co-portfolio manager of Tocqueville’s Gold Fund, on Bloomberg Thursday.
“As we get into August and September, we see a relatively more buoyant gold market as people are hedging themselves,” he added.
Gold prices are still up on the year despite recent weakness ahead of the Jackson Hole central bankers meeting this weekend. December Comex gold futures have come off recent highs, last trading down nearly 0.3% at $1,291.10 an ounce.
However, Groh highlighted that gold is a unique asset in that it has been able to maintain value throughout history.
“Gold has been recognized for 5,000 years as money, recognized around the world as something value and inherently, there’s intrinsic value there in gold,” he said. “People see that and recognize that gold doesn’t have counterparty risk like monetary instruments do.”
As of June 30, the top holdings in Tocqueville’s Gold Fund (TGLDX) include 12.4% in physical gold, 5.32% in mining giant Franco-Nevada, and 4.36% in Pan American Silver. Alongside known gold investor John Hathaway, Groh manages roughly $1.2 billion in assets.