“The forces that are driving gold are stronger than I’ve ever seen in my career,” said well-known mining industry figure Ross Beaty.
Well-known mining figure Ross Beaty has been bullish on gold for about five years now, and in his opinion the case for the yellow metal remains strong.
“It’s almost for me a kind of broken record because I’ve been bullish on gold since 2016 really,” said Beaty, who recently stepped down from his longtime position as chairman of Pan American Silver (TSX:PAAS,NASDAQ:PAAS). “So far it’s been the right call. I really love gold, and I’ve been really challenging myself to figure out a bear case for it, and I just can’t find one.”
Beaty is currently chairman of Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX) and has differing levels of involvement in a number of other companies. His optimistic gold outlook stems from a variety of factors.
“The forces that are driving gold are stronger than I’ve ever seen in my career, and I just don’t see those ending any time soon. We cannot increase interest rates to stem inflation because that’ll crater major markets. Even if we do though, that should be good for gold — even if major markets crater, gold should be a beneficiary,” he explained to the Investing News Network.
“If the US dollar weakens, gold should be a beneficiary. But even if the US dollar strengthens, I think gold will remain strong — I just think in this particular environment gold has a really, really good outlook.”
Looking more specifically at where the yellow metal’s price could go this year, Beaty said it’s likely to move past US$2,000 per ounce again, perhaps in the not-too-distant future.
“I can’t tell you exactly when and exactly how high it’s going to go, of course, but I’m just convinced we are in a secular bull market,” he said. “It’s not over, and it’s going to keep going up and it’s going to favor gold-mining companies — gold equities generally speaking, exploration stocks, producing companies.”
When asked about silver, Beaty said it’s a much smaller market than gold, meaning that a little bit of money moving in or out makes a big difference. He believes that the white metal could put on another a positive performance in 2021 after doing well in 2020.
“I wouldn’t be surprised to see silver continue to outperform gold in 2021,” he commented, although he emphasized that it depends on how much money ends up flowing into the precious metals sector.
Watch the interview above for more from Beaty on gold and silver, as well as what other commodities he’s interested in at the moment.
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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.