Jamie Keech: The Gold Price Rise is Real, and Stocks Will Catch Up

Precious Metals
Gold Investing

“There’s no reason to think that gold should not hit an all-time high in the next couple of years,” said Keech at the Precious Metals Summit.

The gold price has ticked up in 2019, particularly in recent months, but it hasn’t been the same story for all gold stocks, particularly early stage companies.

Speaking at the Precious Metals Summit in Beaver Creek, Colorado, Jamie Keech, co-founder of Resource Insider, said it’s only a matter of time before more of them see upward share price momentum.

“(We’ve seen) a pretty good run over the last year in the gold price. I think it’s up something like 30 percent in the last year,” he said on the sidelines of the show.

“(But) we’re not seeing the multiple you would traditionally expect in the equities. I think equities are up by 20, 30 percent as well — they’re sort of mirroring the gold price. But that’s unusual, or that’s anomalous insofar as they should be trading at a multiple.”

Keech compared what’s happening currently to 2015, when the gold price enjoyed a 20 percent run and juniors were rising rapidly.

“We were getting massive returns in the equities compared to the gold price, and we’re not seeing that today. So I think there’s this sense of people waiting for that to happen,” he said.

When asked what it will take to see that type of scenario unfold, Keech pointed to generalist investors.

“For that to happen I think generalist investors are waiting to figure out or to decide if this gold run is real, if the situation in the world warrants a higher price of gold, before they pile into the space. I’m of the opinion that that’s going to happen in the next 12 to 18 months.”

In terms of where the gold price may go during that time, Keech said he’s optimistic.

“There’s no reason to think that gold should not hit an all-time high in the next couple of years. The situation that the world is in today is extremely chaotic. I can’t predict the future, I certainly don’t have a crystal ball, but I don’t see that calming down in the foreseeable future, and I see that being reflected in the price of gold,” he explained.

Listen to the interview above for more from Keech on gold, plus another metal that he’s interested in right now. Our full playlist for the Precious Metals Summit can be found on YouTube.

Don’t forget to follow us @INN_Resource for real-time updates!

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.

The Conversation (0)