Adrian Day of Adrian Day Asset Management talks about the recent Newmont/Goldcorp deal and where he sees the gold market going in 2019.
At this year’s Vancouver Resource Investment Conference (VRIC), the Investing News Network caught up with Adrian Day of Adrian Day Asset Management.
Speaking about where he sees gold prices going this year, Day said he is feeling very positive.
“I think all of the things we’ve seen over the last few years hold gold back have been one by one turning … but we really need a weak US dollar to get things going,” said Day, adding that even if the dollar remains strong gold can still do reasonably well as the market has seen in the past few months.
Looking over to gold stocks, Day shared his thoughts on how he expects they will perform this year.
“Once gold breaks above US$1,300 per ounce, I think you will begin to see some of the junior [gold] stocks begin to move,” he said.
“Goldcorp is selling itself at a price that we haven’t seen since early 2002, we are selling the stock at a 16 percent yearly low in price,” he explained.
“That says one of two things to me: either management thinks that this deterioration in [stock] price is going to continue, or management is looking at its severance — change of control pay,” he added.
For Day, the market will see a bit of a pause in the M&A space for major companies, although there might be some activity for mid-tier producers.
At a talk at VRIC, Day spoke about the consequences of quantitative easing and tightening for gold and shared some of his insights during the interview.
In closing, Day gave his top three picks in the junior mining sector for the rest of the year and why he likes those companies.
Watch the video above to learn more about Day’s thoughts on gold and what other commodities he is watching in 2019. You can also click here to view our full VRIC 2019 playlist 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 contributed article. 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.