http://www.investmentweek.co.uk/investment-
Sector Investment Managers is renaming its Junior Mining fund to better reflect its 90% allocation to gold miners.
This is its heaviest weighting in gold miners since the fund launched a year ago.
Angelos Damaskos, chief executive, hiked exposure to gold miners from 70% in June.
He used gold price weakness from a peak of $1,260 per troy ounce in June to increase his holding, using cash reserves and profits from copper mining stocks.
He says: "Copper has been doing well, but it is much more linked to prospects for economic recovery. Prices have risen significantly over the past 18 months, and at present levels we question whether there is a lot more room to grow.
"Gold miners have a much greater potential for re-rating than copper or basic resource companies now. Seeing real growth prospects in economies and major countries turning the corner may cause investors to move out of gold, but that is a long way away."
Bullion hit $1,269 per ounce this week, buoyed by expectations central banks will purchase 15 tonnes of it next year. It is up 13.5% this year.
Central banks in India, China, and Pakistan have been buying since mid-2009, Damaskos says, and some developed economies' central banks have turned net buyers recently.
He believes gold could rise for four or five years, supported by such demand, and private investors nervous about inflation and economic uncertainty.
Over summer he trimmed a position in copper miner Western Copper, increasing positions in Centamin Egypt, Medusa Mining, Norseman Gold and Spanish Mountain Gold. He also took a new position in Focus Minerals.
Damaskos says the potential for M&A activity should also boost prices in the mining sector
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