Gold Rally Expected to Continue: What it Means for Miners and Investors

A recent World Gold Council survey of 76 reserve managers found that 84% expect gold's share of global reserves to rise over the next five years, up from 76% a year earlier.

Fund managers see structural support for gold from central bank buying, fiscal and geopolitical risks, and tight mine supply. They believe gold-mining equities offer greater upside through operating leverage, but also carry significantly higher company and equity-market risks than physical gold or exchange-traded funds (ETFs).

Vivek Iyer, partner and chief investment officer at Rational Equity Asset Management, is bullish on another leg of the rally. He argues that the case for gold is structural rather than cyclical.