Regardless of how the gold price performs in the short term, the yellow metal is only heading one way in the long term, says John Wong, lead manager of the Golden Prospect Precious Metals fund (LSE: GPM). Speaking to Shares magazine, he points out that sovereign debt crises and currency woes are far from over. That means gold will soon be on the up again.
His views are supported by the fact that his investment trust has posted a 31.6% gain over the past year, and a 179.3% gain over five years. "The fund is designed to capture a lot of the upside from the movement of precious metals, mainly gold and silver," says Wong. He rejects suggestions of a gold-price bubble, calling the price "fair". "I am very relaxed onvaluations right now... today I can buy at prices I have never seen in ten years playing in the gold space."
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Golden Prospect Precious Metalsholdings
| Silver Wheaton | 10.8% |
| Fresnillo | 6.4% |
| Ausgold | 6.1% |
| First Majestic | 5.2% |
| Perseus Mining | 4.8% |
| Source: New City Investment Managers |
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