Bill Baruch Sees Significant Value in the Miners and a Complement to Bonds

Bill Baruch runs a mining portfolio focused on gold with some silver, and after a heavy reversal in gold he still sees significant value in the space. His case rests on the fundamentals holding up. Costs have remained stable even with energy prices moving higher, and output is solid. That is why he views pullbacks in general as buying opportunities, even if today’s move is not the one to catch. The bigger idea is where the miners fit in a portfolio. Bill sees them as a great alternative or complement to the bond sleeve, and thinks that is a strong way to be looking at things over the next 12 months. He would put midstream energy in the same category, noting that Blue Line runs a real asset alternative basket of midstream energy and mining that complements bonds in an 80/20 portfolio. On specific names, he pointed to Newmont, which got back to its previous highs without quite breaking out before the pullback, Agnico, which has done all right, and Coeur Mining, which he likes a lot. Those are his three favorites in the space. Watch the full discussion here.

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Our team at Blue Line Capital, led by founder Bill Baruch, shares their expertise and unique market perspective.
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