Money manager Adrian Day figures the liquidation phase in gold has about run its course and the metal may be about to get a boost from looser monetary policies around the world.
Meanwhile, he says shares of senior mining companies are cheap at the moment on a relative basis and calls himself a buyer.
Day is president and chief executive officer of Adrian Day Asset Management, based in Annapolis, Md. It has $160 million in assets under management. Much of its focus is on natural resources, including metals, energy and agricultural commodities.
Spot gold fell back from a high for the year of $1,790.65 an ounce on Feb. 29 to a low of $1,527.25 in mid-June, before consolidating sideways and finally starting to work its way higher again in the wake of a soft U.S. jobs report Friday.
Much of gold's downward correction was prompted by a stronger dollar amid worries of a global economic slowdown, Day said. Further, he said, investors became so risk averse and cautious that they have wanted liquidity. So they began to sell what they could, in particular investments in which they had earned a profit, including gold.
Still, he said the winds are shifting back toward gold's back. . .View Full Article