Catch up and get informed with this week’s content highlights from Charlotte McLeod, our editorial director.
It was another positive week for gold, which on Wednesday (May 26) broke the US$1,900 per ounce mark for the first time since January.
Gold’s price uptick has been attributed in part to dovish comments from the US Federal Reserve.
The yellow metal also benefiting from continued concerns about inflation, although Richard Clarida, who is vice chair at the American central bank, said this week that any potential outbreak could be curbed without throwing the country’s recovery off track.
Gold has since fallen back below US$1,900 and was at about US$1,897 at the time of this writing.
What’s next for gold? Our latest prediction comes from Byron King, who writes the Whiskey & Gunpowder newsletter for St. Paul Research, which is part of Agora Financial.
He thinks the precious metal will reach US$2,000 again in 2021, possibly this summer.
“I think we’re going to break the US$2,000 mark this year as 2021 unfolds … I’m really looking for some kind of good news for the dollar, and I don’t see it” — Byron King, Whiskey & Gunpowder
With that prediction in mind, we asked our Twitter followers this week if they think that could happen. By the time the poll closed, an overwhelming majority of respondents said yes, with one commenter suggesting gold will be able to reach a new all-time high by August.
Leaving precious metals behind, I also recently had the chance to speak about copper with Adam Rozencwajg of Goehring & Rozencwajg. I last caught up with Adam about three years ago, when his firm was calling for copper to rise as high as US$10 per pound during the current cycle — with the red metal reaching new all-time highs, I wanted to check in with him and get his updated thoughts.
Adam is still very bullish on copper, which he now believes could breach US$10 and possibly rise as high as US$15 during this cycle.
“This market bottomed in 2016 at US$1.45, US$1.50. If you apply that same type of move this time … then I believe we could definitely be over US$10, maybe as high as US$15” — Adam Rozencwajg, Goehring & Rozencwajg
He spoke extensively about supply and demand fundamentals for the metal, and perhaps most notably said he thinks the next leg of the copper bull market will be driven by supply challenges. The interview is definitely worth a watch if you’re curious about the outlook for copper.
We’re going to wrap up once again with psychedelics, where INN’s Bryan Mc Govern looked this week at red flags for investors. While the experts he spoke to remain optimistic about the potential for this emerging industry, they said it’s important to be cautious because the sector is so young and has quickly attracted a large number of new companies.
“If you go through (a company’s) 10-K, and you see that management is being paid entirely in cash, with no stock options … then that to me is something that makes me wary and would change my mind about a company” — Matt Carr, the Oxford Club
Matt Carr of the Oxford Club reminded investors that most psychedelics companies are looking to follow the pharmaceutical model of drug development, so it’s important to see a long-term roadmap.
He believes a steady CFO is indicative of a solid business plan, and said he sees delays in financial reports and auditor changes as warning signs. He is also wary of management teams with no skin in the game.
Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to email@example.com.
And 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.