Why this portfolio manager sees the return of gold’s glory days — and it’s not just megamerger mania – by Victor Ferreira (Financial Post – February 26, 2019)


David MacNicol has always described himself as a contrarian, so while investors have been exiting gold en masse for years, the natural reaction for him was to stay put.

Now the president and portfolio manager of Toronto-based investment firm MacNicol & Associates believes things are turning back in the yellow metal’s favour.

“We think we’re at the end of a cycle and at a turning point for gold and it has everything to do with interest rates and debt levels,” said MacNicol, who thinks the precious metal’s role as a safe haven remains intact.

Gold prices soared to a high of US$1920.70 an ounce from US$270 during an 11-year bull market between 2001 and 2012. After hitting a floor in 2012, the price has never quite recovered. Since then, investors have remained sour on the Canadian gold mining sector, which was the victim of poorly-executed mergers that left companies struggling to clear their balance sheets.

But a new string of mega-deals appears to have brought some excitement back to the sector, especially from institutional and retail investors who predict further acquisitions are on the way.

For the rest of this article: https://business.financialpost.com/investing/gold-prices-comeback

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