Gold continued to garner broader interest during January, closing out at USD 1’326 per ounce. A weaker U.S. dollar, the U.S. government shut-down, the U.S. Federal Reserve’s pause on raising interest rates, along with the late-2018 market correction, supported gold.
Falcon Gold Equity Fund
Stocks that lagged during 2018 reversed, such as Detour Gold, Mag Silver, Alamos Gold, Torex Gold, and Wheaton Precious Metals. During January, Newmont announced its Intention to acquire Goldcorp. The Fund’s Goldcorp position was sold to reduce the weighting in what will be the combined entity and largest gold producer. Positions in smaller producers were added to,
such as Alamos Gold, IAMGOLD Corporation, Torex Gold and Wesdome Gold as valuations became more compelling. We expect further industry consolidation as small cap precious metal companies recognize the need for scale to attract investor capital. The outlook for gold markets has improved with interest rate increases now on hold. With gold stock valuations at excessively low levels, the Gold mining sector should do well throughout 2019.