“Those of us who’ve been around the gold space for several years — let’s say we need an attitude adjustment,” said Adrian Day.
After six years of negativity in the gold space, investors may be feeling wary about the yellow metal’s upward momentum. But it’s here to stay, according to one expert.
“Some of us, such as myself, have been very, very used to being very, very disciplined on prices that we pay, and we’ve also been reasonably quick to take some profits,” said Adrian Day.
“I think with the changed environment, those of us who’ve been around the gold space for several years — let’s say we need an attitude adjustment,” he continued.
“If gold is going to go to US$1,900 (per ounce), US$2,000, US$2,200, then it really will not matter whether you paid US$26.70 or US$27.30 for Barrick Gold (TSX:ABX,NYSE:GOLD). The important thing is that you own it — not that you saved yourself 10 or 20 cents.”
Similarly, said Day, who is president of Adrian Day Asset Management, investors should be careful not to take profits too quickly in this atmosphere.
“I do think we’ve had a fundamental shift in the market. We’ll get corrections, and we’ve got to be prepared for those corrections … but the market has changed, this is not a false start,” he emphasized.
“I think the important thing is to be invested, to be invested in the quality … the important thing is to realize that this a changed market.”
Aside from sharing advice for investors in the current market, Day also touched on recent gold M&A activity and shared his thoughts on whether major miners have become smarter since the last bull cycle.
“I think there’s definitely more discipline in the mining sector — no question. Having said that, how long will that last?” he asked, noting that miners will be under pressure to replace ounces mined as gold rises.
Watch the interview above for more from Day on investing strategies. You can also click here to watch part one of the discussion, which focuses on the outlook for gold and the global economy.
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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.