Steve St. Angelo of the SRSrocco Report also spoke about the connection between energy and precious metals prices and why it’s important.
Gold and silver prices have trended down so far in 2021, but higher levels are likely in store.
Speaking to the Investing News Network, Steve St. Angelo, independent researcher at the SRSrocco Report, said he anticipates gold and silver price increases following a broader market correction.
He expects a 5 to 10 percent correction in the near term followed by a larger correction later on.
“The bigger correction will come later, maybe it’ll be in 2022,” he said. “And that’s going to impact the precious metals and the miners — so precious metals investors and people who invest in mining stocks.”
St. Angelo said he would expect this type of overall market correction to initially bring down precious metals prices and stocks. But ultimately he thinks it would provide upward momentum, perhaps sending silver to the US$27 to US$30 per ounce level and gold up to a retest of US$2,000 per ounce.
When looking at the outlook for precious metals, St. Angelo focuses on energy, which he believes is the main factor in determining prices for these commodities.
“When you understand energy is the number one dynamic that allows the economy to function, (then you) understand precious metals are a very important investment to own in the future,” he said. “I believe we’re going to start to get into a lot of trouble with our energy supply — most people are invested in stocks, bonds and real estate. If you don’t have energy growth, the value of those assets declines.”
When asked about green energy, which is attracting attention as the world begins to emerge from the coronavirus pandemic, St. Angelo shared some of the issues he sees in that arena, such as the fact that wind turbines and solar panels must be replaced at certain intervals.
“If the green energy really worked, I would be a proponent of it. But if you do all the math, you do all the data on the energy return on investment — on what’s really happening with the green energy, solar and wind — it’s not really a solution, it makes the situation worse.”
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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.