Imaru Casanova, Portfolio Manager, Gold and Precious Metals, for VanEck, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss investing in equities of gold mining firms.
Casanova manages the industry’s longest tenured gold miner’s equity fund, which was founded in the 1950s. Gold prices have shown substantial strength in this year’s rally, driven by strong fundamental factors. Central banks have been net buyers of gold since 2010, but doubled their purchase rate since 2022 to 1,000 tons annually. As Central banks increase their gold holdings, they become less dependent on US dollar reserves. Casanova notes that Russia benefited from its gold reserves as sanctions were enacted after the invasion of Ukraine, which showed other emerging market countries the benefit of holding gold reserves. In 2025, Western investors joined the Central banks as strong buyers, accelerating the multi-year rally in gold prices. Casanova notes that gold prices can continue their rally, as there are no signs of declining demand from Central banks and Western investors.
Investors in gold bullion do not earn a yield, but desire gold holdings as a safe haven store of wealth. In contrast, investing in gold mining equities involves buying companies with risks that include gold prices and company-specific fundamental developments. Gold miners can earn returns that are leveraged to the gold price, with a 1% change in gold prices typically resulting in a larger change in stock prices. Miners can now produce gold at a cost of $1,600 per ounce, leading to rapidly expanding profits and cash flows as prices increase to $4,000 per ounce and beyond.
As an engineer with operating experience in the oil industry, Casanova states the importance of active management of mining companies. The VanEck team has the experience necessary to perform due diligence on companies to determine the strengths and weaknesses of their operating teams as well as the importance of jurisdictions where the miners operate.
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