Thomas Winmill, portfolio manager at Midas Discovery Fund, joins BNN Bloomberg to discuss gold pulling back after record run.

Gold prices retreated after hitting record highs earlier this week, as investors took profits following a sharp rally driven by U.S. credit fears and geopolitical tensions. Despite the pullback, expectations of lower interest rates and persistent deficit spending in Washington continue to support long-term demand for the metal.

BNN Bloomberg spoke with Thomas Winmill, portfolio manager at Midas Discovery Fund, about whether gold’s rally can endure, why mining stocks may outperform bullion, and how investors can position for further gains in the sector.

Key TakeawaysGold hit a record US$4,331 an ounce before easing on profit-taking.Investors view gold as a commodity short term but a long-term store of value.U.S. deficit spending and rising public debt remain key bullish drivers for gold.Lower interest rates and a weaker U.S. dollar could fuel further price gains.Well-managed gold miners with strong cash flow may outperform physical bullion.Thomas Winmill, portfolio manager at Midas Discovery Fund Thomas Winmill, portfolio manager at Midas Discovery Fund

Read the full transcript below:

ROGER: Let’s take a look at how the markets are performing mid-morning on Bay Street and Wall Street. The TSX is down 375 points after a strong start to the week. Moving over to Wall Street, the S&P 500 is up about six points, while the Dow Jones is gaining roughly 140 points. It looked like a down day earlier, but markets south of the border have turned positive. The Nasdaq is off about 30 points, though it’s been improving.

Gold stocks, meanwhile, are under pressure after prices soared to record highs. Gold hit US$4,331 an ounce yesterday, driving up the sector, but today miners such as Agnico Eagle are lower as bullion pulls back.

On the upside, Linamar is trading higher after reports that former president Donald Trump may ease U.S. auto tariffs. Bloomberg says the White House could extend an arrangement that lets automakers reduce tariffs on imported parts for five years. Linamar, a major parts supplier to U.S. manufacturers, is benefiting from the news.

Canaccord shares are also up nearly 16 per cent after Reuters reported the company is in early talks to sell its British wealth unit.

Now, back to gold. After hitting record highs amid concerns about U.S. credit quality and rising tensions between Washington and Beijing, the metal is pulling back today. For more on what’s behind the move, I’m joined by Thomas Winmill, portfolio manager at Midas Discovery Fund.

THOMAS: Pleasure to be here, even though gold is down today — it’s still been a very good year.

ROGER: Gold hit a record high yesterday but has since pulled back. What’s putting pressure on it now?

THOMAS: I think the market is seeing gold more as a “risk-on” asset right now. It’s that old question — is gold a commodity or an alternative currency? At the moment, investors seem to view it like any other commodity — steel, iron, nickel — rather than as an alternative currency. That’s why it’s losing some of the boost that pushed it up about 55 per cent so far this year.

ROGER: And how do you see it?

THOMAS: In the short and medium term, yes, gold is acting like a commodity. Production has ramped up, more mines are operating, and demand is tapering off. But over the long term, the factors that drove gold to this level remain intact.

We see interest rates in the U.S. likely coming down as the economy slows and inflation ticks higher. The biggest issue, though, is government debt — massive deficit spending and the US$41-trillion debt ceiling against an economy worth roughly US$30 to 31 trillion. Those numbers don’t add up. Historically, that leads to inflation, higher taxes and, eventually, a weaker dollar — all of which support higher gold prices. Until Washington reins in spending and debt, we think the trend for gold remains solidly upward.

ROGER: How long do you see that trend lasting? Is this short term or something you’d hold longer?

THOMAS: Trading gold short term is tough — it’s a very psychological market. Prices swing sharply. Today, gold stocks are down five or six per cent, but over the last 20 years managing Midas Discovery, it’s paid to hold. Over the past three years, we’ve averaged about 55 per cent annual returns because well-run miners with low costs are generating huge free cash flow. Eventually, the market will reprice those companies higher.

ROGER: How should investors approach gold and gold stocks?

THOMAS: The best time to buy is when prices are lower — like today. A simple way to start is to invest a set amount monthly into a good mutual fund for diversification. Avoid companies in heavy capital expenditure cycles — focus on producers generating free cash flow.

ROGER: Which companies stand out to you?

THOMAS: We like firms in politically stable regions. Our largest holding is Agnico Eagle — it’s paid a dividend every year for 45 years. Most of its mines are in North America, with some in Mexico and Scandinavia. It’s well-managed and focused on efficiency and cost control.

ROGER: It’s having a down day along with the rest of the sector, but that’s understandable. What about holding physical gold — bars, coins?

THOMAS: Physical gold has challenges — storage costs, wide bid-ask spreads, and no yield. For retail investors, those spreads can be significant. Institutions can manage that better, but for most people, gold mining stocks provide better return potential. They offer leverage to gold prices without the holding costs.

ROGER: Maybe just a couple of bars under the mattress then. Thomas, thank you for joining us today.

THOMAS: You’re welcome.

ROGER: That was Thomas Winmill, portfolio manager at Midas Discovery Fund.

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This BNN Bloomberg summary and transcript of the Oct. 17, 2025 interview with Thomas Winmill are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.