Investors Await Their Moment in Gold Price Action
Ned Naylor-Leyland, investment manager of the Jupiter Gold & Silver fund, shares insights on what drives gold prices and how investors can benefit from the current market trends.
The fund's unique approach combines physical gold and silver with investments in gold miners and silver miners, allowing it to tap into different subsets of the market. At present, the portfolio is 50-50 between gold and silver, with a slight overweight towards silver due to its additional beta benefits.
Naylor-Leyland notes that physical gold should not be confused with holding shares in gold miners, as they can behave differently due to their exposure to foreign exchange markets. He attributes the recent price volatility to leverage and hedge funds driving momentum rather than investor participation, which is still lacking.
Despite the current narrative-driven trade, Naylor-Leyland believes that investors will eventually join the market, driven by fundamentals such as exceptional profitability and low valuation metrics among gold miners. When this shift occurs, he expects to see 'quite fancy price action.'