MILLBROOK, NY – November 22, 2022
According to estimates of the World Gold Council, central banks purchased 399 tonnes of gold in the third quarter of 2022, nearly double the previous record. The identities of which central banks, however, was not specified for 75% of those tonnes. Bloomberg speculated that potential buyers could be China, Russia, or oil exporters such as Saudi Arabia or the United Arab Emirates. China in particular has been an active purchaser of gold, importing around 900 tonnes year-to-date. Oil exporters, meanwhile, have reaped the benefits of higher oil prices and may be looking to gold as a store of value for their sovereign wealth funds. The price of gold has increased approximately 5.5% in the first twenty days of November 2022 and is now down around 4% year-to-date. In comparison, the S&P 500 is down around 17.5% year-to-date.
Midas Fund The Fund’s holding of Evolution Mining Ltd., an Australian gold miner with operations in Australia and Canada, performed well in the past month. Shares of SSR Mining Inc., a Denver based mining company with operations in Turkey and North America, underperformed in the past month.
The Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income through investments primarily in precious metals mining and other natural resource companies, as well as gold, silver, and platinum bullion. The Fund currently is invested in a global portfolio of primarily large and medium gold and diversified mining companies, precious metals royalty companies, and ETFs holding gold and silver bullion.
Midas Magic The Fund’s position in Enova International Inc., a lending company for consumers and small businesses, performed well in the past month. The Fund’s holdings of Alphabet Inc., a multinational technology conglomerate and parent company of Google, hindered the Fund’s performance in the past month. Each of Mastercard Inc. Class A and Alphabet Inc. Class A currently comprise more than 10% of the Fund’s net assets.
The Fund seeks capital appreciation. Relative to the S&P 500, the Fund’s portfolio currently is more weighted in economically sensitive sectors, such as communications, and cyclical sectors, financial services, and is underweight in defensive industries, such as utilities
How to Invest in Gold?
Three alternatives investors often consider when seeking the advantages of gold are gold bullion, stocks of gold mining companies, and funds that invest in gold and gold-related securities, such as Midas Fund. Using a disciplined approach, Midas Fund seeks to emphasize gold and other natural resource companies offering financial strength, expanding production profiles, strong free cash flow, and promising exploration potential. The Fund’s portfolio is focused on what we believe to be some of the best companies in the sector and so we view Midas Fund as currently well positioned to seek capital appreciation and protection against inflation.