Scotia Wealth Management Senior Portfolio Manager Nick Majendie talks about the outlook for gold after the Fed’s decision to keep short-term interest rates unchanged.
Senior Portfolio Manager at Scotia Wealth Management Nick Majendie gave curious investors an answer in his interview on BNN.
He thinks gold is attractive.
“Gold will attract more attention over time,” says Majendie in an interview on BNN. He also mentions that he is surprised by the amount of upside on the gold sector, and cites that gold production and increasing demand for the metal has made gold attractive.
More importantly, Majendie sees the price of gold going higher, “and I wouldn’t rule it out going back to previous highs.” He further adds, “if that’s the case, you’re going to make a lot of money on gold bullion but a lot more on the stock.”
Majendie previously highlighted the gold sector on his note, “The Outlook for Gold and Gold Stocks” on September 1, 2016. He wrote, “we believe there is a strong case for precious metal prices going substantially higher than these levels in a world of negative interest rates and geopolitical uncertainty, in which case our stock price targets in this sector could prove to be considerably understated.”
Majendie’s note included a list of top gold miners Barrick Gold (TSX:ABX), Goldcorp (TSX:G), Agnico Eagle (TSX:AEM), Kinross (TSX:K), Yamana (TSX:YRI), Franco Nevada (TSX:FNV), and Silver Wheaton (TSX:SLW).
In another BNN interview, RBC Wealth Management Managing Director George Gero mentioned that he sees more buyers in the gold sector in the future. He said, “should we move up to the $1365 technical area and close, we’re going to see a lot of Funds coming and looking at gold again.”
Gold continues to rally on the Fed’s announcement of unchanged rates: $1,342 per ounce as of 12:40:20 pm.
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Securities Disclosure: I, Pia Rivera, hold no direct investment interest in any company mentioned in this article.