From Collin Kettell: In this interview, money manager Greg Orrell gives us a presentation of the OCM Gold Fund where he discusses his 30 years experience in the resource sector.
He outlines where we are in the resource space and where we are going. Greg talks about how he got started managing the fund. The fund specializes in the precious metals mining industry. He looks at this market as a hedge against financial uncertainty and currency risks.
He feels that gold is the pre-eminent currency, and it is under-owned compared to all other market classes. The long-term trajectory of the U.S. dollar is toward further debasement. Negative interest rates are likely to continue. Countries like Russia and China are actively working on alternatives to the U.S. Dollar. Owning gold assets is a way of preserving capital in uncertain times and is why you need to have it. You need to think like a contrarian since at some point gold will attract a lot of capital.
The Trump administration is likely to put more pressure on budget deficits. Judy Shelton, one of Trump’s economic advisors, has advocated a move back to a gold-linked currency.
He outlines OCM Gold Fund’s portfolio and philosophy for investing. He says balance sheets are looking better for many juniors. We need more success stories in this space instead of projects that don’t work. The juniors are now getting financing from the majors. This has attracted top talent and created opportunities. You need to keep an eye on management teams. Mining companies have been overly optimistic about reserves. Some companies have diluted shares faster than central banks have weakened currencies. He discusses their favorite small-cap holdings.
The SPDR Gold Trust ETF (GLD) fell $0.07 (-0.06%) in premarket trading Friday. Year-to-date, GLD has gained 11.42%, versus a 16.56% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.