Fund manager says gold price can double. Here’s how I’d invest

first_img Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Manika Premsingh | Monday, 20th July, 2020 | More on: CEY Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Fund manager says gold price can double. Here’s how I’d invest See all posts by Manika Premsinghcenter_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. The price of gold has had a great run recently. It’s up 27% in a year. But fund manager Diego Parrilla, of the Spanish Quadriga Asset Managers, believes there’s more upside in store, according to a Bloomberg report. Parilla’s $450m fund, with at least half its investments in gold and other precious metals, has seen a 47% return this year.  Gold price has more upsideGold is a popular investment in times of economic slowdown. As doomsday thinking takes over and we are unsure of all other investment options, we are likely to buy gold. I don’t think a systemic collapse, which will hold gold in best stead of all assets, is likely. But gold can still be a good hedge during stock market crashes. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Ideally, I think the best time to buy gold is during economic booms, when the performance of other financial instruments takes the shine off the yellow metal. But if Parrilla’s views are to be believed, even right now can be a good time. According to him, the gold price could double in the next three to five years. I think holding a small percentage of your investment portfolio in gold maybe an idea to consider in any case. And if you are risk averse or are convinced of its merit, buying even more maybe a good idea too.Investing optionsThere’s more than one way to buy gold. The most obvious is to hold gold in its physical form as gold bars. Another option is to hold it via one of the multiple exchange-traded funds (ETF) based on gold.A third way of buying exposure to gold is through FTSE stocks. Consider the FTSE gold miner, Centamin Mining (LSE: CEY), whose recent results are encouraging. Both gold production and gold sales have increased by double digits from last year. After seeing falling revenues in three of the last four years, I think the latest numbers bode well for CEY in 2020. Cyclicality in the gold price and performance can’t be ruled out, of course, since gold demand is expected to rise in recessions. This means that gold demand can remain muted in good years. We don’t know how long this recession will last, though. If the economy continues to remain weak or even uncertain, gold prices can remain elevated, as Parrilla suggests. The Covid-19 threat hasn’t receded completely either. Geo-political tensions are also underway. If the UK does decide to proceed with the no-deal Brexit, it could result in much uncertainty. The US and China haven’t seen eye-to-eye in a while. And stress between the two may well escalate over time, further impacting economic growth and possibly creating another stock market crash.The takeawayAs a result, the gold price and the Centamin Mining share price will be impacted. The CEY share price is trading at all-time highs right now. Further, it offers a dividend yield of 5.2%. For those of us who are particularly risk averse, this is a stock to consider. But it’s worth bearing in mind, that with improvement in economic conditions, it can come off fast too.  Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. Image source: Getty Images. last_img

Leave a Reply

Your email address will not be published. Required fields are marked *