Gold's Secular Bull Market Persists on Debt and De-Dollarization: Gabelli's Mancini

Gold prices climbed above $4,250 an ounce to a seven-week high. Chris Mancini of Gabelli Gold Fund argues the advance is fueled by structural drivers including geopolitical uncertainty, rising government debt and central bank de-dollarization, not mere cyclical factors.

He points out that mining equities remain undervalued, trading at 10-11 times earnings while delivering record cash flows with all-in sustaining costs near $2,000 per ounce. Mancini recommends owning the miners rather than physical metal for greater upside potential.

Near-term risks include possible Fed rate hikes if oil prices spark inflation, yet Mancini expects gold to revisit $5,000. “I think everything that drove the gold price up to $5,000 is still in play,” he said, highlighting gold’s role as an asset with no counterparty risk.