The gold market is looking ‘buoyant,’ according to Tocqueville portfolio manager Doug Groh. Groh called the current rally in gold back in March of this year. Groh manages Tocqueville’s $1.25-billion gold fund and said it was important for gold to break through the $1,300 – $1,303 level.
The Chart Guys explain key technical analysis in their latest video from September 5th. Also, the host gives strong evidence to why $1,377.50 is the monthly resistance level. If gold breaks above that a new bullish leg will have begun.
Debt Ceiling to Drive Gold Prices in September
Groh said that the conversation now becomes focused on the debt ceiling,
“Investors will look at their equity portfolio and want to make sure they are finishing off the year in good form – [they are saying], I’m going to take some money off the table and hedge my position, gold is a perfect diversifier for that.”
He also commented on the rise of crypto currencies, which he called ‘faddish,’ explaining
“The thing about crypto currencies is there is counterparty risk, or there is risk to the system that you are participating in; whereas gold around the world is recognized as a monetary instrument.”
Finally, Groh talks about investors becoming more comfortable with the gold sector. “The true value opportunity is in the individual mining companies.” Groh and his Tocqueville Gold Fund are looking for miners with great deposits and good operations that can boost cash flows.