Adrian Day of Adrian Day Asset Management talks about the gold space, streaming and royalty companies and what’s ahead in 2019.
At this year’s Sprott Natural Resource Symposium, the Investing News Network caught up with Adrian Day of Adrian Day Asset Management, who shared his thoughts on the gold space and what’s ahead for the yellow metal in 2019.
“Fundamentally I would say the tide has turned and there’s a primary reason for that — sentiment has changed,” Day said about gold prices increasing in the past few weeks.
“All central banks had announced tightening over a year ago and they have all admitted defeat. They cannot tighten and that’s extremely bullish for gold.”
Gold prices have increased more than 8 percent since the beginning of July, breaking the US$1,500 per ounce mark for the first time in six years last week. But interest in gold stocks doesn’t seem to be surging at the same pace, at least not for junior miners.
“There’s definitely something holding people back from buying junior gold stocks, but the senior stocks have moved,” Day said. “Most of the new money is coming from institutions or generalist investors — people that are already in the space still feel like they’ve loaded up.”
Day also touched on the danger that has arisen for investors who have been holding gold stocks for a long time and have seen them decline.
Speaking about the main trends in the gold space, the expert said that the mergers and acquisitions season is not over yet.
“The primary reason for that is that if the large companies are going to maintain their production they pretty much have to buy other assets because they are not finding them,” Day said. “We might even see some mergers among the juniors.”
In closing, Day spoke about why he likes streaming and royalty companies and factors to watch out for in 2019. Our full playlist for the Sprott event can be found on YouTube.
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Securities Disclosure: I, Priscila Barrera, 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.