Our expert fund managers have created an actively managed portfolio of ten gold holdings that consists of eight producing gold miners and two explorers.

The aim of this portfolio is to pick gold related stocks that we believe are trading at attractive levels relative to the current gold price. In fact, many of the gold stocks in our portfolio would fit the moulds of both value and growth stocks when looking at their fundamentals. This is unprecedented given the current outlook for gold prices; historically when gold prices are strong, gold miners have traded at extremely expensive levels.

Portfolio Features:

  • Hand picked gold stocks
  • Portfolio made up of 8x gold producers and 2x gold explorers to balance out risk/reward
  • Held in your own name and account
  • Low management fee of 1%+gst
  • Actively managed by expert fund managers
  • All changes run by and approved by you



Gold prices are being driven higher by large government borrowing and extremely low interest rates


Gold discoveries are becoming rarer and mining production of gold is starting to plateau or decline globally


Investor demand for gold continues to increase, with record interests in gold ETFs and record volumes traded on commodity exchanges


Gold miners are leveraged to the gold price, with a percentage movement in the gold price leading to a greater percentage rise in the margins of the miner


Australia is a fantastic gold mining location, with large gold reserves, strong corporate governance, and highly rated mining jurisdictions


Why Gold?

There is little to write about gold that has not already been said. It is extremely rare, extremely valuable, and unlike national currencies, you do not have constant central bank meddling trying to devalue it.

Gold is also starting to be consumed in large quantities for the first time, through its use in electronics.

Gold is often held as an alternative to currency, to hedge possible movements in that currency. This usually means to hedge against inflation, which is a measure of the drop in the value of a currency. However, historically this presented an opportunity cost, as gold yields no inherent interest payments.

By holding gold instead of currency, you are therefore giving up the potential interest on a deposit of that currency.

Because of this, we say that gold is inversely correlated with ‘real rates’, which is the interest rate less the level of inflation. Rising inflation is positive for gold, falling interest rates are positive for gold.

In this environment, where the value of a dollar is worth less and less, where the trustworthiness of currency issuers is less and less, and where fiat currency systems are pushed to their limits, there is every reason to hold gold and gold assets.

Why should I invest in this portfolio instead of just physical gold?

Gold miners are leveraged into the gold price. This is because their costs are largely independent of the gold price. What this means is that should the gold price rise say 10 percent, the margin of a gold miner should rise by more than 10 percent.

We also believe that gold stocks have underperformed the gold price since gold started rallying in 2014. Only in the past 18-months have gold stocks started to outperform as they chase the gold price. We expect that the recent outperformance of gold stocks will continue as they are still historically cheap when compared to the gold price.

Why should I invest in this portfolio instead of an ETF like GDX?

GDX will give you exposure to simply the largest gold stocks in the world. There is no analysis going into which of those stocks are likely to outperform and which are likely to underperform. You are therefore tracking the gold miners in general.

We believe that we have selected attractive stocks that have the potential to outperform the average large global gold miner. We also use active management in our portfolio, meaning that we have the potential to capitalise on attractive prices, sell underperforming assets, and take actions that could potentially lead to outperformance.

Given that we are invested purely in ASX-listed gold stocks, we also do not have the same multitude of global currency exposures that can potentially impact returns.

Western Australia, where the majority of Australia’s gold occurs, was also named the second most attractive mining area on earth by Canadian think tank the Fraser Institute.

What is your investment process

We start by looking at all the ASX-listed gold producers. Each stock must meet certain quantitative requirements before we review them. We screen them by their past, present, and expected future performance. How much they have grown production, how much they have grown revenues and profits, how much debt it required, etc.

We then look at the projects themselves, how much of a resource they are sitting on, what grades are being dug up, and how much it is costing them to produce an ounce of gold. We also look at the project pipeline for potential near-term project completions that could improve future numbers. Now, we check the hedging of each stock and how much they are geared towards movements in the gold price. After compiling this information, we select a balanced mixture of both high growth and good value gold producers, with a skew towards low costs and large resources. 

With regards to the much smaller explorers’ proportion of the portfolio, we are looking for later stage exploration projects, with large resources at high gold grades. We consider the market capitalisation of the businesses and how much the stock is valued relative to the value of the gold in the ground. Only cheap, high grade, large gold deposits at attractive prices will make it into our explorer screening.