Adrian Day: US$2,500 Gold? Pullback Would be "Healthy," Reasons to Buy Remain
With an eye for detail and over a decade of experience covering the mining and metals sector, Charlotte is passionate about bringing investors accurate and insightful information that can help them make informed decisions.
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The gold price has seen ups and downs since the US election.
The yellow metal took a hit directly after Donald Trump's victory, falling to the US$2,550 per ounce level. But then it staged a quick recovery, passing US$2,700. It's now pulled back again, currently at around US$2,650.
Ahead of gold's second post-election decline, Adrian Day, president of Adrian Day Asset Management, told the Investing News Network he wouldn't be surprised to see another leg down.
In his view, a fall to US$2,500 wouldn't be surprising in that scenario.
"But I would say to anyone — certainly if they're not invested in gold — don't wait for that. The key is that the reasons to buy gold have not changed, and we still need gold for a lot of reasons," Day said.
"Gold is not a political metal. Gold to me is the anti-fiat metal, if you want," he explained.
"And obviously a strong dollar — strong against other currencies — is negative for gold. But you can have a strong dollar and still be losing purchasing power. The dollar's lost 22 percent of its purchasing power in the last four years — that's by the government's own numbers. So that in itself tells you ... you need it. You need gold," Day added.
Watch the interview above for more of his thoughts on gold, as well as gold stocks. You can also click here to view the Investing News Network's New Orleans Investment Conference playlist on YouTube.
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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.
