"everybody has had a chance putting the boots into it" - Peter Major.

JOHANNESBURG - It's a perennial battle between gold shares and gold metal over which investors should buy, if they should buy either of them. Moneyweb chats to an award-winning fund manager for his views.

Peter Major, an award-winning fund manager at Cadiz Corporate Solutions, gave his views on gold in the Moneyweb Market Review podcast.

"Well right now it's hard to find something that has performed worse than our gold index and that's often the time to stop looking at an investment, is when it's down - everybody has had a chance putting the boots into it - at least give it a second look at that time and as you said, the gold index is trading where it was a month ago but it's also trading where it was a year ago and it's also trading where it was about 10 years ago.

"So if an index has gone flat for 10 years, and we know there's been a lot of money printed since then, a lot of inflation since then, maybe there's worth a good hard look even though we've all said what's against it - electricity, cost increases, labour cost increases, government legislation, general working cost increases - they are against it, but just the price of our gold index and the price of our gold shares relative to almost every other category of investment - it is looking a bit attractive - or it's looking over sold - that's what I should say.

"Maybe not looking attractive, but it's looking so over sold that if there's any kind of reversion to the mean, any kind of flight out of one of the other four asset categories, the gold shares actually have a decent chance of outperforming for the next couple of years.

"It might be a long shot, but I'd rather be holding the gold index now than I would gold itself."

Major went on to give his views on the three major JSE listed gold miners, Gold Fields, Harmony and AngloGold Ashanti, in the Moneyweb Market Review podcast (follow your favourite gold shares in your own Moneyweb Watchlist).

Write to Chris Blaine: chris@moneyweb.co.za

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