Manager of Tocqueville Gold Fund (TGLDX) Sees Gold Over $1,000, Recommends AUY, EGO, IVN

John Hathaway, Portfolio Manager of the Tocqueville Gold Fund, is the subject of the Barron's interview (paid sub req'd). Key points:

• While near term isn't clear, wouldn't be surprised to see gold go over $1,000.
• Why? There's a shift to tangible assets, and gold is the most liquid tangible asset.
• On gold stocks versus gold itself: "the shares have underperformed the metal to some extent, but over a period of time and on a historical basis, the shares give you more octane then the metal itself."
• Oil and other inputs required to mine gold have gone up in price more than gold. When the price of gold catches up with those prices, gold mining companies will become more profitable.
• Gold stocks are also being hit by excessive share issuance by gold companies.
• Stock picks: (1) Yamana Gold (ticker: AUY), based in Brazil "with great land package". (2) Ivanhoe Mines (ticker: IVN), "huge discovery in Mongolia... world-class copper discovery". (3) Eldorado Gold (ticker: EGO), assets in Turkey which is "geologically a very good place to be".

Mr Hathaway's largest positions are Goldcorp (ticker: GG), Gold Fields (ticker: GFI), Ivanhoe and one which he didn't mention in the interview -- Cameco (ticker: CCJ), according to the fund's profile. Cameco's Q3 conference call transcript is here. Chart left; click to enlarge.

Also of interest: a video interview with Hathaway about the case for investing in gold.

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