I link to interviews with John Hathaway of the Tocqueville Gold Fund a lot. I do so because I think he's a wise (a word I don't use often) and smart money manager.
Yes, we could think he's talking his book on gold because he runs a gold mutual fund. But Hathaway started his fund in 1998 -- think dot-com boom -- so he's not some huckster promoting something just because it's hot.
Barron's Online posted an interview with Hathaway today. He was asked about his current thoughts on precious metals:
The reasons to be investing in gold or silver are very much related to monetary and fiscal issues of today's Western democracies. And those are not transitory, trading types of concerns. These seem to be intractable, vexing problems. I believe that the value of not just the dollar, but the euro and the yen will be sacrificed to the needs of the state. That was kind of always true to some extent, but it has really blossomed into a front page kind of story now. What has to be done to restore credibility to paper currency is going to be very unpopular and quite difficult to pull off.
Later in the linked article, he names some gold mining stocks he owns. Among them are three that I own as well -- Newmont Mining (NEM), Agnico-Eagle Mines (AEM) and Goldcorp (GG).
Goldcorp is his largest position. Asked why, Hathaway replies:
Actually it's worth talking about because the reason it is our biggest holding is that we already own it and then one of our biggest juniors, Andean American, got taken over by it. What's good about Goldcorp. is that of the big-cap companies, they have the best defined, most exciting growth profile.
Read the entire thing if you can access Barron's Online. Hathaway believes we're in the third quarter of the Bull run in gold (to use an American football analogy). And the only thing that would convince him to shut down his fund would be a Paul Volcker-like person running the Fed.