Andrew O’Donnell, managing director at SuperCharged Stocks, doesn’t see gold rising aggressively in 2020, but he does believe that the metal has a strong future.
“(My target is) US$1,670 (per ounce) for the year, somewhere around there,” he said at the recent Vancouver Resource Investment Conference (VRIC).
“Now, we’re going to get more volatility in it, I think there’ll be trading in it,” he continued. “But I think this is more of a slower climb because the problems that we’re facing on a macro level are significant, and they’re not going away any time soon … There’s some significant foundational problems that mean gold is going to have a case for years to come.”
O’Donnell will be watching gold and silver most closely this year, with copper a close third, and said he anticipates that some juniors will be able to gain traction.
“But we have a lot of work to do in the junior market … there’s a lot of what’s called lifestyle companies out there that are not real.” In his opinion, the onus is on investors to do their due diligence.
“You don’t just listen to someone say, ‘Hey, go buy XYZ stock.’ Put a bit of work in, find out who the management team is. Have they met milestones before, and what have they done before to meet objectives and milestones?”
Many commentators in the resource space have suggested that the market will truly be kickstarted once generalist investors become interested in gold again, and O’Donnell said the same, explaining that the yellow metal can act as a gateway for newcomers. However, overall he’s looking to underlying global problems as gold’s key driver moving forward.
“At the state the world is right now, almost anything is possible,” he said.
Watch the video above for more from O’Donnell on gold. You can also click here to see our full VRIC 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.
