Gold Stocks Could Surge as Much as 90 Percent in 2013

Monday, 14 January 2013
Written by  The Globe and Mail
Published in Gold Investing

As many investors and traders get excited about what gold may do in regards to price movement this year, even many portfolio managers are coming out and saying that the yellow metal stocks could surge by up to 90 percent this year.

How good could it get for miners? John Hathaway, a portfolio manager at New-York based Tocqueville gold fund, believes that when gold starts to trade sustainably above the $2,000 U.S an ounce level, shares could run up by 60 per cent to 90 per cent.

This is quite the news for many, as it is enough to make anyone want to go out and buy as much gold as possible. That being said, you will still want to talk to your financial advisor about what is right for you in regards to when and how to buy gold and then what to do with it.

Mr. Hathaway is one of the highly regarded money managers in the space, so what he says is worth some attention. He’s up more than 18 per cent annually over the past decade, so he’s right far more often than he’s wrong. While many of us expect, and have heard, that gold will make a run at $2,000 per ounce in 2013, Hathaway is going a bit further and actually letting people know what it could do for them in the long run.

“Gold needs to rise only 15 per cent to trade at a new high. We believe that this is in the cards for 2013, and that such a move will be driven by the continuation of negative real interest rates and heightened concerns over the direction of monetary and fiscal affairs in all western democracies,” he writes in his latest investment commentary.

His predicted gold share price rise is for the XAU, or Philadelphia gold index, which represents many of the more actively traded miners in North America.

If gold continues upward in 2013, it will be lucky 13 for the monetary metal, because it’s risen on an annual basis for the past 12 years. Few markets consistently go up, and that should make investors cautious. The record high was $1,901 posted in mid- 2011. Gold definitely has a chance to surpass this number in 2013, especially if all the right components fall into place over the next few months.

Now may be the perfect time to look into gold and what it can do for you.

Original Article: The Globe and Mail

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