Is there still an investment case for 'lacklustre' precious metals?

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Ian Williams
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Ian Williams

A lacklustre performance by gold and silver prices this year, despite multiple ongoing geopolitical issues, has renewed questions about the relevance of precious metals as a major investment class.

But the case for a meaningful exposure to gold and silver, preferably through a portfolio of high-quality mining shares, remains compelling.   A wider perspective on the recent price action provides some clues. Gold's recent weakness follows a strong upward spike in early 2016 when it surged from $1,050 to $1,350.  Currently about $1,200, it has given back some gains due to a rampant dollar and slack interest from the investment sector, which is unlikely to improve until the equity bull market turns. Still, our cycle analysis suggests gold remains in a primary long-term bull market tha...

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