Wednesday, August 21st 06:37 PM IST

QE tapering may benefit Gold, gold stocks ultimately: Chris Mancini

# gold  # QE tapering  # gold stocks  # Aureport  

Among his best picks are Royal Gold Inc. (RGLD: NASDAQ, RGL:TSX), Franco-Nevada Corp (FNV:TSX:FNV:NYSE), Silver Wheaton Corp (SLW:TSX, SLw:NYSE) as they have a good cash flow and royalty or streaming rights to lower cost mines. His second largest holding is in Franco-Nevada and holding it since its initial public offering.

Photo Courtesy: BigStockPhoto.com

LONDON (Bullion Street): What impact will the QE tapering have on gold and gold stocks? According to Chris Mancini, a leading precious metals analyst, the QE tapering impact has already been priced into gold prices.

In an interview to Aureport, he said that if QE ends completely, then S&P 500, Dow and Nasdaq would correct meaningfully. But that could end up with pleas for more QE in which case it would ultimately benefit gold.
Mancini is a research analyst at the Gabelli Gold Fund Inc., specializing in precious-metals mining companies.

He has over 13 years of investment management experience, including research analyst positions at hedge funds Satellite Asset Management and R6 Capital Management. Mancini earned a bachelor's degree in economics with honors from Boston College.

Among his best picks are Royal Gold Inc. (RGLD: NASDAQ, RGL:TSX), Franco-Nevada Corp (FNV:TSX:FNV:NYSE), Silver Wheaton Corp (SLW:TSX, SLw:NYSE) as they have a good cash flow and royalty or streaming rights to lower cost mines. His second largest holding is in Franco-Nevada and holding it since its initial public offering.

"B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX) has net cash on its balance sheet and generates cash flow. The company is building its Otjikoto project in Namibia, which is low cost. Once that is completed, it has no further capital commitments. It has a credit line of about $150M that it could use to finance another project. If it doesn't make an acquisition, it should be fine. If it does, it has the ability to make a very accretive acquisition."
Another company in the Good category would be Fresnillo Plc (FRES:LSE), a Mexican company, according to Chris Mancini in Aureport.com

How about a fully featured Android App for your business?

Bullion Street Newsletter