Canadian investment advisers are increasingly bullish for gold stocks, but lukewarm on oil, a survey conducted March 27 to 31 by BetaPro Management Inc. finds.
The survey indicates advisers are feeling optimistic that gold prices – which hit an all-time high of $1,485 per ounce Friday – will go even higher.
The Q2 adviser sentiment survey asked Canadian investment advisers to give their outlook on 17 distinct asset classes. In the last quarter survey, they were undecided on the direction of gold after more than two years of strong performance.
Of the 130 advisers surveyed recently, 51% were bullish on gold versus only 38% in the Q1 survey, and 53% are now bullish on gold bullion compared with 35% in the previous poll.
Howard Atkinson, president of BetaPro said: “After one quarter of doubt, it appears advisers again see value in investing in precious metals. Bullish sentiment on both gold and silver was very strong in the Q2 survey.”
Conversely, it appears that adviser sentiment on oil is weakening.
In the Q1 survey, 61% of advisers were bullish on the commodity. After a 14% rise in crude prices during the first quarter, adviser sentiment from the Q2 survey seems mixed, with 41% bullish and 44% bearish on the direction of oil prices.
“With questions surrounding demand from Japan and the impact a higher oil price can have on global economic recovery, our survey shows that a larger number of advisers feel oil prices don't have much room to grow over the next quarter,” Atkinson said.