[miningmx.com] – SINGAPORE-based Chancery Asset Management has established a $10m fund for gold and silver junior companies believing they will outperform the metal, said Bloomberg News.
“Any time over the last three years would have been a disaster’ to invest in gold mining stocks, Chancery’s chief investment officer Thomas Puppendahl told Bloomberg News. “After this wash-out, the sector in general really bottomed out end of last year. We’re at the beginning of the next cyclical bull market in the miners,’ he said.
“In the next bull market, I’d expect that these companies will finally deliver the leverage that you’d normally expect’ from producers over buying gold itself, Puppendahl said. “The sector over the last 2-3 years has restructured, the costs have come down. They’ve put in place more decent capital deployment policies. Management has in general become more disciplined,’ he said.
However, the benchmark Market Vectors Gold Miners ETF climbed 21% percent this year while the SPDR Gold Trust returned 11%, said Bloomberg News.
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