In the latest edition of this widely followed update, Foster, Portfolio Manager for the VanEck International Investors Gold Fund (ticker: INIIX), shares his thoughts and updates following an eventful month for gold and gold-related equities.
Among the highlights in the piece:
- On recent market conditions: “It looks like the strong central bank buying that characterized 2018 continues.”
- On the outlook for gold: “Weakness in housing, autos, retail and manufacturing combined with the lagged effects of the Fed’s tightening in 2018 could again weigh on the stock market in 2019. Another selloff might be the catalyst gold needs to break through its price range.”
- On recent consolidations: “Merger and acquisition activity has now reached the ultimate level in the gold industry.”
- On Barrick’s hostile bid for Newmont: “The merger focuses attention on the potential gains that unitizing Nevada would generate for both companies.
- On the case for junior miner exposure: “We continue to maintain a portfolio of junior developers with good projects… we expect our patience to pay off once investors return to the junior sector.”
The complete update is available here.
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