Top Stories This Week: Doug Casey’s Gold Outlook, Long-term Picture for Lithium

The gold price continued to hover around the US$1,900 per ounce mark this week, but as usual experts remain confident about the yellow metal’s future prospects. 

I had the chance to speak to Doug Casey of InternationalMan.com, who said gold has done well and will do better moving forward, in large part due to money printing by the US Federal Reserve.

He’s a big believer in owning physical gold, and said that he’s never sold any of the gold he’s purchased. However, he also sees major potential in gold stocks.

“The (US) government is running trillions of dollars of deficits, and they’re all being financed by the Federal Reserve by printing money” — Doug Casey, InternationalMan.com

Doug said that while buying major miners like Newmont (TSX:NGT,NYSE:NEM) and Barrick (TSX:ABX,NYSE:GOLD) is fine, the real potential is in small companies that are run by serially successful management teams. He didn’t name names this time around, instead encouraging those interested in the market to do their own research.

“Look, there are quality small gold-mining companies run by really good, serially successful people that are geologists and mining engineers. That’s the kind of stuff you should buy” — Doug Casey, InternationalMan.com

Aside from gold, battery metals are still in focus as INN’s Priscila Barrera wraps up her coverage of Tesla’s (NASDAQ:TSLA) Battery Day. Although this event happened almost a month ago now, experts continue to unpack how CEO Elon Musk’s comments will impact the lithium space in the long term.

Overall, industry insiders agree that the event hasn’t changed the outlook for lithium over the next decade or so — in other words, while oversupply and low prices are still issues at the moment, it won’t be long before higher demand from Tesla and other electric vehicle makers reinvigorates the industry.

“I still think the next 10 years in this sector are going to be amazing in the changes and opportunities they will present” — Chris Berry, House Mountain Partners

Of course, we can’t forget the approaching US election. This week we asked our Twitter followers how they think gold will move as the vote approaches — up, down or flat. The vast majority of respondents said they think it will go up, with about 30 percent saying flat and a scant 10 percent saying down.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

In the cannabis space this week, INN’s Bryan Mc Govern looked back at what happened in Q3. Experts agree that the market continues to face growing pains as it becomes more clear which companies are viable and which have only been riding the wave of marijuana hype.

After suffering a C$3.3 billion loss for its 2020 fiscal year, Aurora Cannabis (TSX:ACB,NYSE:ACB) is just one major company that’s recently announced new leadership and a new strategy.

However, analysts at BMO Capital Markets are skeptical about whether new CEO Miguel Martin can deliver — in a note to investors, they said they think Aurora could be as much as three years away from being sustainably profitable, unless it makes “more meaningful cuts.”

“Because new management is trying to shift from value to more premium, we do not expect growth on a volume basis over the next three years until the company settles into a steady state market share, which we define as low-to-mid-teens percentage” — Tamy Chen and Peter Sklar, BMO Capital Markets

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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.