Buying ASX gold shares? Here's where this top fundie sees 'multi-bagger' gains on offer

The ASX gold stock bull run could have much further to run yet.

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

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).

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall today
Gold

Up 29% since February, why is this ASX 200 gold stock tumbling today?

The ASX 200 gold stock is under selling pressure on Wednesday. But why?

Read more »

Two ASX shares investors fighting each other to grab gold treasure.
Gold

As ASX gold stocks cool off, here are 2 to buy when the price is right

Shaw and Partners portfolio manager James Gerrish reveals 2 gold shares to watch amid the sell-off.

Read more »

A woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face as the Kingsgate share price goes lower
Gold

Why are ASX gold shares being trashed on Tuesday?

The sector isn't shining today.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

Is this the very best ASX 200 gold stock to buy now?

Is the best gold miner money can buy right now? Bell Potter appears to believe it could be.

Read more »

Open copper pipes
Gold

Why this jumbo ASX gold stock is targeting a copper pipeline

This massive gold miner seems to be seeing a better future in copper.

Read more »

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.
Gold

Guess what new trend is taking off amid the soaring gold price

With the gold price soaring to new record highs, an innovative trend is taking off.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Gold

Is buying ASX gold shares right now a good idea?

The ASX All Ords Gold Index is up 23% since February. Is it too late to buy gold stocks now?

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Gold

Here's why the Newmont share price is making big ASX news today

Newmont shares just passed a big milestone...

Read more »