The gold price is holding steady above US$1,500 per ounce after surging through that critical level earlier this month, but investors who want to make money still have time.
That’s according to Brien Lundin, editor of Gold Newsletter. Speaking at the Sprott Natural Resource Symposium ahead of gold’s big move, he said that he doubts the US Federal Reserve’s recent interest rate cut will be its last, which is positive news for the yellow metal.
“Wall Street in general has shown the Fed that it’s in charge, it needs more and more easy money, and sooner or later — probably sooner — the stock market is going to tell the Fed … that no, it needs another one, and then another one. Once it starts these kinds of rate cuts, it’s usually a long-term trend,” he said.
In terms of how low rates could go, Lundin said he thinks normalcy is a thing of the past.
“The era of anything close to normal interest rates is behind us. From now on we will have ultra-low to very negative, significantly negative real rates moving forward, and that’s going to be tremendously bullish for the metals,” he said.
Lundin expects a higher gold price this year and in 2020, and said that so far juniors in the space have seen little upward momentum.
“The junior mining stocks are still only starting to respond. There’s still bargains galore in that sector. And I think that it’s just a great opportunity for investors in that we know that gold’s rallying, the metals are rallying, silver is rallying, but you can get tremendous leverage to that move still by getting into the well-positioned juniors,” he said.
“Buy the juniors now, while you can.”
Watch the interview above for more from Lundin on gold and the resource space, including his best investment so far this year. Our full playlist for the event can be found 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.
