first majestic silver

Regarding Gold In 2014, Did You Know?

January 12, 2015

1. It is only in America that nobody seems to know or care but, in fact, during 2014 gold was the second best performing currency after the US$.

gold price % annual change

​2. Most Western investors see gold as a short term trade even though over the past 10 years, gold is +157% vs S&P +70% and over the past 15 years, gold is +300% vs S&P +40%.

3. When the Ruble collapsed in 2014, it was gold, not equities, that offered a safe haven.  As the Ruble declined 70% against the US$, Russian equities lost about 12% in Ruble terms whereas the gold price in Rubles rose 73%. 

4. Gold ETF holdings have declined with gold prices but silver ETF holdings have remained stable. What gives? Over the past two years gold ETFs have served as a “swing bullion supplier” that prevented supply shortages as prices  of paper gold declined even

​as demand for physical gold has remained strong.

5. While Western investors have been trading gold securities, real gold has been flowing to the East where it is viewed as a core reserve holding that is independent from the fortunes of fiat currencies and financial assets.  

russian central bank gold reserves

Shanghai gold exchange gold withdrawals  

Bottom line:

In 2014 gold has protected investors whose currencies lost global purchasing power. This property of gold is valued in the East where they continue taking advantage of the West’s willingness to part with its bullion at current prices. 


Courtesy of Tocqueville Bullion Reserve L.P. ( )

John Hathaway, CFA, Senior Managing Director, Co-Portfolio Manager

Mr. Hathaway is a co-portfolio manager of the Tocqueville Gold Fund, as well as other investment vehicles in the Gold Equity Strategy. Mr. Hathaway also manages separately managed accounts for individual and institutional clients.  He is a member of the Investment Committee and a limited partner of Tocqueville Asset Management ( Mr. Hathaway began his career in 1970 as an Equity Analyst with Spencer Trask & Co. In 1976, he joined investment advisory firm David J. Greene & Co., where he became a partner. In 1986, he founded Hudson Capital Advisors and in 1988 became Chief Investment Officer of Oak Hall Advisors. He joined Tocqueville as a Senior Partner in 1998. Mr. Hathaway has a BA degree from Harvard College and an MBA from the University of Virginia.  

Simon A. Mikhailovich, Managing Director

Mr. Mikhailovich is a member of the TERA executive board and lead manager of TBR. Prior to co-founding TBR, Mr. Mikhailovich co-founded Eidesis Capital, a special situations asset management firm formed in 1998. Since inception, Eidesis has raised and deployed over $2.5B of capital through special opportunity funds focused on strategies in high yield corporate bonds and loans, credit derivatives, distressed CDOs and mortgage securitizations, and gold. Between 1985 and 1998, Mr. Mikhailovich was a Portfolio Manager at Falcon Asset Management overseeing private placements and alternative investments in hard assets, including direct investments in oil and gas properties, timberlands and agricultural ventures. During the early 1990s, he headed a global workouts effort responsible for the restructuring and disposition of non-core businesses in North America and Europe. Mr. Mikhailovich received a M.S. in Business (Finance) from the University of Baltimore and a B.S. from Johns Hopkins University.

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