Gold’s rise above US$1,600 per ounce earlier this year was based on geopolitics, according to Byron King of Agora Financial. But what investors should really be thinking about is debt.
“We’re looking at gold being about valued where it ought to be,” he said at the Vancouver Resource Investment Conference. “And as events unfold — meaning debt, debt (and) more debt … to preserve your wealth over the long haul, gold ought to be your starting point.”
King believes the US$1,550 level is sustainable for gold, and said he expects this year’s election in the US to be positive for gold and other metals rather than negative.
“The one person who can defeat Donald Trump in this election would be Donald Trump, and I think he knows that. And so I think he’s going to throttle it back, which … is going to keep things going well for gold, silver, base metals, exotic metals, technology metals — the things that make your world work.”
Touching on the recent phase one trade deal between the US and China, King described it as good for the world overall, and in particular for metals like copper. He also remains interested in rare earths, which came into the spotlight over the summer as the trade war heated up between the two nations.
“There are projects in process right now with checks being written, money being sent, checks being cashed (by) people who are going to rebuild a mines-to-magnets program in the US and Canada,” he said when asked about whether the US has a chance of decreasing its reliance on Chinese rare earths.
Overall, his message to investors was that while gold and silver are a good place to start, there will be benefits to getting behind other metals as the resource space heats up.
“In the world of mining, and really in the world of investing out there, if you haven’t been thinking about it — yes there’s gold, yes there’s gold and silver. But yes there’s a whole lot of other things that are related to it chemically, physically on the periodic chart. You can’t run the world without this stuff.”
Watch the video above for more from King on gold and other metals he’s interested in. 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.
