Gold has done well this year, even breaching US$2,000 per ounce over the summer, and Doug Casey of InternationalMan.com believes the yellow metal’s future looks bright moving forward.
“Gold has done well indeed, and I think it’s going to do better,” he told the Investing News Network.
“The (US) government is running trillions of dollars of deficits, and they’re all being financed by the Federal Reserve by printing money. That’s why we’re having the stock market bull market right now — you throw trillions of dollars at it, people will buy stocks, they want to get out of dollars,” he explained.
“But gold is going to profit much more even than stocks do. It’s high now, (but) it’s not at giveaway levels. But as people get scared it’s going higher — so I remain a gold bull.”
So what should investors do if they want to profit as gold continues to run higher? Casey is a proponent of owning
physical metal
, but he pointed out that the most outsized gains will come from gold stocks.
“Look, there are quality small gold-mining companies run by really good, serially successful people that are geologists and mining engineers. That’s the kind of stuff you should buy,” he said.
Buying major miners like Newmont (TSX:
NGT
,NYSE:NEM) and Barrick (TSX:
ABX
,NYSE:GOLD) would also be profitable, he said. “But better to buy the next tier down — smaller, leveraged, growing.”
He did emphasize that market participants need to do their research and avoid getting taken in by promoters. For those who are able to do so, there should be major rewards.
“When these smaller gold stocks run, they can go 10 to one easily; some of them go 100 to one,” said Casey. “I’ve personally owned gold stocks that have gone 1,000 to one … within just one gold cycle. So this is the place to be, assuming I’m right about gold. I think I am.”
Watch the interview above for more from Casey on gold and gold stocks, as well as government reactions to COVID-19 and what could happen in the aftermath of the upcoming US election.
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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.
