Entrepreneur Frank Giustra makes a point with newsletter author Alex Deluce at the Precious Metals Summit in Beaver Creek, Col. Credit: Henry Lazenby
Hathaway, managing partner of Sprott Asset Management, says less than 1% of most investment portfolios are allocated to gold, showing how the asset is misunderstood. Reallocating just 2-3% to gold could push up prices by $1,000 per oz., he said. “We’ve spent the last 30 years globalizing, and now we’re moving in the opposite direction. De-globalization is inherently inflationary,” he said.
“I’m not overly bullish in the short term. A breather to $2,300 or $2,350 per oz. wouldn’t be a crash—it would be a healthy consolidation,” Stöferle explained.Rule pointed out that the GDX, an index of gold mining stocks, is down 40% over the past decade. He attributed this underperformance to poor capital allocation, inflationary pressures, and ill-timed mergers and acquisitions.