- AustraliaNorth AmericaWorld
VIDEO - Peter Grandich: We Need this Washout for Gold to Go Higher
“We had a near-parabolic rise earlier this year. It’s not uncommon to see a substantial correction not long after that,” said Peter Grandich.
It’s been another tough week for gold, with the yellow metal sinking to around US$1,810 per ounce at its lowest point during the period, a level not seen since July.
Should investors be worried? Peter Grandich of Peter Grandich & Company doesn’t think so.
“We had a near-parabolic rise earlier this year. It’s not uncommon to see a substantial correction not long after that. I think that’s what we’ve experienced,” he told the Investing News Network.
“The good news out of it is the rampant bullishness that we saw just a few months ago, where just about everybody was predicting US$3,000, US$4,000, US$5,000 gold, in recent days (there are) a lot of headlines of people talking about it going lower, or the best of it has been seen,” Grandich continued.
“Those are the types of things sentiment-wise that needed to be washed out if we are to go to some of those levels that people have predicted.”
Speaking about the factors moving gold, Grandich rejected the idea that the metal’s upward price momentum this year has been driven by COVID-19, instead pointing to global currency debasement.
“There’s no longer a standout among any currencies, and with interest rates so low gold makes a natural case for what it’s usually been for several hundred years, and that’s an alternative to paper money.”
Aside from gold, Grandich also spoke about uranium, a market where he sees future potential.
“I think it’s turned already,” he said when asked about when the industry may see the turnaround that experts have been promising for years. “The price is off the bottom. It may not turn fast enough for the few that remain in it … but I think you can argue that it’s in the earliest stage.”
Watch the interview above for more from Grandich on gold and uranium, including his thoughts on M&A activity and four gold stocks he’s involved in.
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.