The Fund fell -1.2% during the month (B Class), compared with the EMIX Global Mining Gold Index which rose +0.6% (in Sterling terms).
At the end of a challenging year for precious metals, the sector remains subdued. However, with a macroeconomic sea-change underway we believe a turning point is near:
- Inflation is positive for real assets and commodities. Precious metals are the ultimate real financial asset.
- The US rate hike cycle is a potential catalyst for precious metals’ recovery particularly as it is becoming clearer that hikes will be limited and real rates are set to remain low.
- The appeal of the safe havens is growing – Risks abound, from tense geopolitics and social issues to new COVID-19 variants.
- Gold miners remain in healthy shape for recovery:
- Producers’ margins are strong
- Dividends are increasing
- Valuations are very attractive
- ESG has become a core focus for miners
To hear more on our latest views and outlook for the year ahead, please view our latest webinar recording here.