Don Coxe, a widely followed and respected Canadian investment manager, in his Basic Points, urges investors to emphasize miners over bullion. The key quote,
"What was most hurting gold shares recently have been the high-profile price plunges for shares of some high-profile producers with reserves in the ground in politically risky regions," Coxe noted. "It is absurd that investors are selling shares of companies which have, as a matter of policy, avoided investing in those high-risk countries."
"These disappointments should lead to huge outperformance for the companies who have the least endogenous risk, and we believe that will happen this year," he predicted.
"Gold has in the past decade evolved from being a curiosity to a speculative investment to a sound investment," Coxe said. "It is now becoming a necessary investment, as central banks print money prodigiously-and promise to continue."
"Emphasize the miners at the expensive of the bullion ETFs," Coxe stressed.