Peter Spina, founder and president of GoldSeek, shares his thoughts on the gold market under a Trump presidency and what to watch for in 2017.
So far, 2017 has been kind to the gold price, and investors have been turning to the metal in the wake of economic uncertainty. Speaking to the Investing News Network (INN) at this year’s Vancouver Resource Investment Conference (VRIC), Peter Spina, founder and president of GoldSeek, shared his thoughts on the market.
Highlights of the conversation include:
- whether gold has performed as expected so far in 2017
- what gold investors should to do prepare for interest rate hikes from the Federal Reserve
- what advice Spina has for investors during times of uncertainty
- reasons to be optimistic about the gold price this year
- gold stocks that Spina has on his radar
Below is a transcript of the conversation. It has been edited for clarity and brevity. To watch the interview, please scroll to the top of this article. To view INN’s other VRIC interviews, click here.
INN: Now that we’re about a month into 2017, has gold performed as you expected?
PS: Yeah, we had a real big sell off since the elections in the US and it got highly oversold … [it] was really one of the most oversold in the short term that we’ve seen in awhile. So it’s good to see it coming off these lows. I think we’ll continue to see it move into the next month higher.
INN: There have been comments made alluding that the Federal Reserve will raise interest rates three times this year. What should gold investors do to prepare should that happen?
PS: It’s a big question whether that will actually happen three times. I think we’ll get a couple of rate increases, but I don’t think it will have a big effect for gold investors. I think it’s mostly been priced into the market. The dollar has really rallied in the last months. Trump has said he doesn’t want a strong dollar, and it’s not really helpful with all the debts out there. So I think we’re seeing the top of the dollar rally. They could keep the dollar still firm though. I don’t think we’ll see the dollar drop immediately right now — I think it’ll stay up there — but I don’t think it’ll go up too much higher. So I think gold is really most priced into the strong dollar.
INN: What advice do you have for gold investors during times of uncertainty?
PS: I think for gold investors they’ve gone through a very difficult four or five years of uncertainty. There’s a downturn, and what I said last year continues through to this year. This is a time to be a buyer, to be accumulating positions. The opportunity in this market, we haven’t seen this in a long time. The gold price is looking pretty stable right now, and the gold stocks have really come down relative to the gold price over the last five years. So this is a great time to be a buyer.
INN: Last year, Brexit had huge implications for the gold price and it soared well above $1,300 an ounce. What reasons are there to be optimistic about the gold price this year?
PS: Well, Trump is bringing a whole different ball game to the entire world. We’re going to see potential starting wars and protectionism coming; terrorists. So there’s going to be all sorts of uncertainty related to that. There’s a whole new populism movement. So in Europe you have Italy’s and Germany’s elections this year. Trump might be feeling that. The euro, politically, looks very uncertain. The EEU (Eurasian Economic Union) … doesn’t look very positive this year. These are some big issues and I think Brexit was the opening to this new movement to this new trend.
INN: Finally, are there any gold stocks that you’re watching this year?
PS: I’m really interested in the junior side of the gold and silver sector. I have several companies that I’ve been investing in, from Goldsource Mines (TSXV:GXS) to Silvercrest Metals (TSXV:SIL), GoldMining (TSXV:GOLD) up here out of Vancouver. There’s a new company, Northern Vertex (TSXV:NEE), that’s starting production up this year in Arizona that looks quite interesting. So I continue to look for new opportunities, and I’ve been accumulating a lot of the known names as well, like Endeavour Silver (TSX:EDR,NYSE:EXK), First Majestic Silver (TSX:FR,NYSE:AG), and I think those will do quite well for companies. But if you really want leverage, the junior stocks is where you’re going to get that upside.
INN: Thank you so much for your time.
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Securities Disclosure: I, Jocelyn Aspa, 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 contributed article. 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.
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