“Last summer we saw gold over US$2,000 an ounce. I expect we’re going to see the same thing again this summer,” he said.
The gold price passed US$2,000 per ounce last summer, soaring to a new all-time high, but it’s cooled off since then, spending much of 2021 below the US$1,900 level.
Byron King, who writes Whiskey & Gunpowder at St. Paul Research, which is part of Agora Financial, believes the yellow metal could pick up pace this summer as well, perhaps rising above US$2,000.
“Last summer we saw gold over US$2,000 an ounce. I expect we’re going to see the same thing again this summer,” he told the Investing News Network in an interview.
King’s view on the gold price is tied to his outlook for the US dollar, which is not favorable.
“When we look ahead, is the US government going to get its spending under control? I don’t think so. Is it going to get its fiscal act together? I don’t think so,” he said.
“Or is the Federal Reserve going to somehow say, ‘No more … Congress, stop spending so much money, we’re not going to print up the wherewithal for you to do it.’ Are you kidding me? No way.”
Demand for physical gold as well as physical silver has been strong, and King pointed out that if prices are a little lower at the moment that’s beneficial for buyers.
“If you’re concerned that your gold hasn’t gone up, all I can say is this is God’s way of giving you the opportunity to pick up some more at reasonable prices while you can. And I (would) throw into that mix silver as well — silver if you can get it,” he said.
King also spoke about how gold stocks have been faring so far this year, saying that investors should aim to choose well and exercise patience.
“If you can just hold your horses for four or five years with a company that knows what they’re doing, that’s sitting on a world-class mineral deposit, you’ll get your 20 to 1 returns,” he explained.
Watch the interview above for more from King on what’s happening in the gold market. And stay tuned for part two of the discussion, which focuses on copper.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.