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www.moneynews.com/headline/jpmorgan-gold-oil-gas/2014/04/25/id/567733/
Neil Gregson of JPMorgan Natural Resources Fund says the fund is only 15 percent invested in gold — its lowest level in more than a decade — because global economy recovery is bad for the precious metal.
Gregson, who took over the fund in 2012, expects the fund will regain some lost ground in the coming months after having shrunk from about $5 billion in assets to about $1.7 billion since 2011 on a grinding slide in commodity prices.
He is counting on global economic growth in 2014 to help send most commodity prices higher.
Editor's Note: Secret Investment Calendar 96% Accurate (And Extremely Profitable)
“I think we are absolutely past the worst now,” he told The Telegraph. “I understand it has been painful over recent years but we are in fundamentally sound companies with a lot of growth ahead of them.”
“We think by staying the course we will get rewarded on those investments in the future.”
But he predicted gold will not participate in commodities’ international resurgence.
“A global recovery, particularly one led by the US, is not good for gold,” he predicted. “We see a challenging environment for gold in the year ahead,” he said.
“At a gold company level, it is really going to be a stock picker’s market. There are some very cheap companies out there, but there are also some companies that have high costs of production and high debt levels, and if the gold price doesn’t pick up, they will be in trouble.”
Instead of gold, the JPMorgan Natural Resources Fund is more focused on Gregson’s watch on companies that extract and produce other key commodities, such as oil and gas.
Gold perma-bull Peter Schiff, founder of Euro-Pacific Capital, takes the opposite view on gold from Gregson.
In an interview with MarketWatch, Schiff predicted that reckless monetary stimulus actions by the Federal Reserve could vault gold prices up to $5,000 per ounce from their current levels of about $1,305 per ounce.
“Over the past few years the Fed had become [a] serial mover of goal posts, delaying the decision to end stimulus more than anyone would have predicted. When the Fed has to admit that its forecast of a sustained recovery is wrong, it will come to the aid of a faltering economy with even more QE. When that happens, gold will rally,” Schiff said.
Mining industry publisher Kitco News said the gold outlook now looks favorable on account of safe-haven buying over the Ukraine crisis.
“This situation is now a geopolitical flashpoint in the eyes of the market place,” Kitco said.
Read Latest Breaking News from Newsmax.com http://www.moneynews.com/Headline/JPMorgan-Gold-Oil-Gas/2014/04/25/id/567733#ixzz3090aEaq0
Neil Gregson of JPMorgan Natural Resources Fund says the fund is only 15 percent invested in gold — its lowest level in more than a decade — because global economy recovery is bad for the precious metal.
Gregson, who took over the fund in 2012, expects the fund will regain some lost ground in the coming months after having shrunk from about $5 billion in assets to about $1.7 billion since 2011 on a grinding slide in commodity prices.
He is counting on global economic growth in 2014 to help send most commodity prices higher.
Editor's Note: Secret Investment Calendar 96% Accurate (And Extremely Profitable)
“I think we are absolutely past the worst now,” he told The Telegraph. “I understand it has been painful over recent years but we are in fundamentally sound companies with a lot of growth ahead of them.”
“We think by staying the course we will get rewarded on those investments in the future.”
But he predicted gold will not participate in commodities’ international resurgence.
“A global recovery, particularly one led by the US, is not good for gold,” he predicted. “We see a challenging environment for gold in the year ahead,” he said.
“At a gold company level, it is really going to be a stock picker’s market. There are some very cheap companies out there, but there are also some companies that have high costs of production and high debt levels, and if the gold price doesn’t pick up, they will be in trouble.”
Instead of gold, the JPMorgan Natural Resources Fund is more focused on Gregson’s watch on companies that extract and produce other key commodities, such as oil and gas.
Gold perma-bull Peter Schiff, founder of Euro-Pacific Capital, takes the opposite view on gold from Gregson.
In an interview with MarketWatch, Schiff predicted that reckless monetary stimulus actions by the Federal Reserve could vault gold prices up to $5,000 per ounce from their current levels of about $1,305 per ounce.
“Over the past few years the Fed had become [a] serial mover of goal posts, delaying the decision to end stimulus more than anyone would have predicted. When the Fed has to admit that its forecast of a sustained recovery is wrong, it will come to the aid of a faltering economy with even more QE. When that happens, gold will rally,” Schiff said.
Mining industry publisher Kitco News said the gold outlook now looks favorable on account of safe-haven buying over the Ukraine crisis.
“This situation is now a geopolitical flashpoint in the eyes of the market place,” Kitco said.
Read Latest Breaking News from Newsmax.com http://www.moneynews.com/Headline/JPMorgan-Gold-Oil-Gas/2014/04/25/id/567733#ixzz3090aEaq0
