ASX gold shares have been enjoying a tremendous run over the past seven weeks.
As you're likely aware, the outsized gains many of the Aussie gold miners have been posting since the end of February have been fuelled by a fast-rising gold price.
It was only back on 15 February, that an ounce of gold was trading for US$1,992 per ounce. Which was already near historic highs.
Over the weeks that followed, the yellow metal surged to set a series of new all-time highs, topping US$2,392 per ounce on Friday.
At the time of writing on Monday, that same ounce is worth $US2,378.
As for the performance of ASX gold shares, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has rocketed 27.3% since the closing bell on 28 February. That's even more remarkable as over this same period the All Ordinaries Index (ASX: XAO) is down 0.3%.
So, with these big gains already in the bag, is it too late to go prospecting for multi-bagger gold stocks?
Not according to Collins St Asset Management chief investment officer Vasilios Piperoglou.
Targeting multi-bagger gains from small-cap ASX gold shares
As The Australian Financial Review reports, Collins St made some outsized returns from their early investment in uranium and late by backing offshore oil services stocks.
But Piperoglou believes the opportunity presented by ASX gold shares, particularly in the small-cap space, could outshine those previous successes.
"With gold stocks, the way the asymmetry is playing out currently, I think there is a greater potential in this than the other two," he said. "We're seeing the very early signs of the start of a gold bull market."
And Piperoglou doesn't believe ASX investors will have to wait around for years for some of the top junior gold miners to double, or more, in value. The kind of multi-bagger we all like to have in our portfolios.
"At some stage, investors are going to get smacked in the face," he said. "There will be a moment within months, not years, where people wake up and these quality small-caps will multi-bag."
The small-cap ASX gold shares currently owned by the Collins St value fund include:
- Barton Gold Holdings Ltd (ASX: BGD)
- Brightstar Resources Ltd (ASX: BTR)
- Tesoro Gold Ltd (ASX: TSO)
- Great Boulder Resources Ltd (ASX: GBR)
- Meeka Metals Ltd (ASX: MEK)
- Odyssey Gold Ltd (ASX: ODY)
The fund also holds two larger ASX gold miners, both with market caps north of $1 billion. Namely Ramelius Resources Ltd (ASX: RMS) and Westgold Resources Ltd (ASX: WGX).
