Mancini Sees Gold's Bull Market Continuing Amid Global Uncertainty

Chris Mancini, co-portfolio manager of the Gabelli Gold Fund (GOLDX), believes that gold's secular bull market has further to run. Despite short-term headwinds from monetary policy uncertainty, Mancini points out that persistent geopolitical uncertainty, rising government debt, central bank diversification away from the U.S. dollar, and eroding confidence in fiat currencies are driving gold's long-term advance.

Mancini notes that investors continue to view gold as a cyclical asset, treating its record highs earlier this year as the peak of the current cycle. However, he argues that gold's value is not tied to economic consumption but to its role as a monetary asset, making it distinct from industrial metals such as copper or iron ore.

Mancini is bullish on mining equities and believes they offer greater upside than owning bullion alone if investors expect gold prices to remain near current levels or continue climbing. He points out that major producers are generating record profits with all-in sustaining costs around $2,000 an ounce while gold prices remain above $4,000.