The Blue Whale fund has named its top commodities bet
He conceded that he was "a little late to the party" of the explosive rise in gold prices, but believes the rally will continue
The British fund Blue Whale Growth, which invests in shares of a narrow range of companies with large capitalization in developed markets, bet on the further growth of gold, despite the recent correction in prices. One of the key assets in its portfolio was the securities of the American Newmont - the largest gold producer in the world.
Details
Blue Whale Growth recently opened a position in Newmont, and the stock is now one of the fund's top 10 investments, its chief investment officer Stephen Yu told CNBC. He acknowledged that the fund may have been "a little late to this party" with gold. However, persistent macroeconomic concerns - in particular, rising U.S. government debt and the risks of the dollar losing its status as the world's reserve currency - could support a further rally in 2026, the top manager said.
"We do believe there may be opportunities as far as the gold area is concerned, even though it has already performed quite well," Yu said.
Newmont reduced its gold production to 1.42 million ounces in the third quarter of 2025, down 15% year-on-year. However, a 41% increase in the average realized price of the precious metal in July-September - from $2,518 to $3,539 per ounce - offset the decline in production and allowed the company to beat earnings forecasts.
What others think of the stock
Against the backdrop of gold rally, Newmont shares soared 2.4 times in 2025. At the same time, Wall Street analysts' sentiment toward the company's securities has improved over the past three months. According to FactSet data, the number of buy recommendations (Buy and Overweight ratings) increased from 18 to 22, while neutral ratings (Hold) became fewer: three instead of seven. The consensus forecast on the securities remains at the level "above the market" (Overweight). The average target price of $104.7 per share calculated by FactSet implies a potential upside of 16%.
What to expect from gold in 2026
Gold price gains have stalled in recent weeks, but the precious metal could soar to $5200 to $5300 an ounce by the end of 2026 - a quarter above its current price, JPMorgan Chase investment strategist Alex Wolfe told Bloomberg this week.
The largest Swiss bank UBS also bets on the rise in the price of gold above $5000 per ounce. November 10, UBS predicted that the precious metal will reach this level in 2026 or 2027, writes Barron's.
Economist and prominent gold supporter Peter Schiff said on Nov. 12 that "speculators are throwing in the towel" on cryptocurrency-related stocks and moving their holdings into precious metals. He suggested that the sell-off could soon spread to the broader cryptocurrency market, adding, "Soon they will give up on bitcoin as well." In early October, Schiff said the price of gold would exceed $20,000 an ounce sooner rather than later.
This article was AI-translated and verified by a human editor
