Dagens Industri | Gold, silver and mining stocks with AuAg Funds portfolio manager Eric Strand

Eric Strand, portfolio manager at AuAg Funds, joined Dagens Industri's Börsmorgon on Di TV to talk about why the gold price has fallen, why central banks keep buying gold, and what is happening in silver and mining stocks.

Valuable insights

• When nobody wants to buy, it can be a good time to look. Gold has fallen sharply and buyer interest is low. Eric points out that historically, the moments when few people want to buy have often turned out to be among the better times to do so. A quiet market like this can mean prices are near a temporary low.

• Central banks keep adding gold to their reserves. Central banks hold gold as part of their national reserves, and they continue to buy more. China still keeps only a small share of its reserves in gold, which Eric says leaves room for plenty of further buying. He also notes that after the US froze other countries' assets, many central banks would rather hold gold than US government bonds.

• Mining company shares have yet to catch up with metal prices. The companies that dig gold and silver out of the ground have performed strongly, and silver miners have recently made a significant shift as they're performing better than gold miners. Even so, he argues their share prices still assume metal prices will fall back. If prices simply hold where they are, he sees continued potential in the sector.