"We expect gold to hit $2,100 next year, but silver will be at $50 an ounce, up from $29 today," he said. "We don’t think real interest rates in the West will rise for some time, and gold and silver are the only currencies not being eroded," he added.
Winnifrith still thinks there is good growth to be found in gold, but favours technology, saying stocks are cheap as investors remain shy on the sector following the dotcom bubble.
"The best value in the market is in technology. Not in Facebook, which is ludicrously overvalued, but in computer services companies," he added. "You can’t underestimate the scale of the pain felt following the boom and bust in 2002, and that will take a long time to recover."
Winnifrith’s SF t1ps Smaller Companies Growth and SF t1ps Smaller Companies Gold funds have also been boosted by a lack of funding for small businesses.
"Smaller companies have had a problem finding funding, which allows us to plough in and fill our boots knowing there’s a lot of safety there. If the company doesn’t do as well as you think, you still make a profit. If it outperforms, then even better," he said.
Performance of funds vs FTSE All Share over 1-yr
Source: Financial Express Analytics
The manager’s gold fund is the best-performing vehicle in the entire IMA universe over one year, outperforming its closest competitor by almost double.
Over the past 12 months, both funds have returned more than the FTSE All Share. The manager attributes his addition to the Alpha Managers group to his buy-and-hold strategy.
"We really are the most boring of managers," he said.