Investing in gold mines offers diversification, leverage, and the gold industry upside potential.                              

Why gold mines ?

Gold offers many benefits to investors. Inversely correlated with USD, it provides protection against the greenback's depreciation (the weakness of the USD against other currencies between 1998 and 2008 supported gold prices during this period). It also offers a hedge against inflation pressure. Lastly, consistently low real interest rates around the world reinforce gold attractiveness.

Investing in gold mining companies is an interesting approach to capture the trend on gold as it offers:

  • a potential leverage to gold appreciation (around 2x gold prices) ;
  • an attractive investment opportunities as gold mining companies are beginning to earn the fruits of the restructuring process undertaken in recent years. The financial discipline implemented since 2012 has been contributing to improve cost efficiency and balance sheets. Moreover, limited mine supply growth with a few recent significant discoveries should keep the mining production under control over the upcoming years. 
  • a play for diversification: gold miners’ equities are weakly correlated to global equity markets (over the last 20 years, correlation between the MSCI World has been around 0.21) but highly correlated with gold prices (0.79 over the last 20 years).

Gold production


Our approach

Our investment universe is composed of approximately 150 stocks of gold, silver, platinum & diamonds mining companies.
It includes well-established companies which operate several mines in different countries, as well as less mature firms which are still in intense phase of developing their activities.
For a better monitoring of volatility, we also invest in royalties companies whose business consists in advancing funds to mining companies and get a portion of their future production in exchange through royalty agreements. As they do not operate mines, they avoid most operational and financial risks associated with mining. Therefore, they provide a safe way to play gold mines.

To select companies, the investment team favours a combination of:

  • top-down criteria : monitoring of macro indicators, geopolitical environment, sector analysis
  • bottom-up criteria : based on a deep knowledge of companies: reserves replacement, exploration potential, production composition (by product), cost control, access to energy/water and other infrastructures, capital necessary to the mine’s development, management’s efficiency and track record in mining development, and safety of the mine’s location.


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Past performances are not a reliable indicator of future performances of the funds and of the funds manager.