Top Stories This Week: Inflation Rises, Ross Beaty Shares Advice for Gold Investors

Gold remained below US$1,900 per ounce for the most part this week.

Market watchers were waiting on the latest US inflation data, which came out on Thursday (June 10) — the Consumer Price Index, which tracks a basket of goods and services, rose 5 percent in May compared to the year-ago period, and 0.6 percent from the previous month. Both numbers were above analysts’ expectations, and the year-over-year increase was the biggest seen since 2008.

The US Federal Reserve has said repeatedly that it sees inflationary activity as “transitory,” but this week’s numbers have sparked discussions about whether the central bank may move away from its easy money policies more quickly. More details may emerge from the Fed’s next meeting, which is next week.

Investors often turn to gold as a hedge against inflation, so does that mean a higher price is in store? Mining industry veteran Ross Beaty remains as optimistic as ever. He’s been bullish on the metal since 2016, and although he’s challenged himself to find a bearish scenario, he hasn’t been able to do it.

“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” — Ross Beaty

Ross recently stepped down from his longtime position as chairman of Pan American Silver (TSX:PAAS,NASDAQ:PAAS), but remains involved with Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX) and various other companies. He told me in a recent interview that he sees gold continuing its positive performance, and he has high expectations for gold equities.

His advice for investors who want a “happy outcome” was to buy a basket of stocks across the spectrum, from explorers to intermediate companies to gold producers.

“It’s not over, and (gold is) going to keep going up and it’s going to favor gold-mining companies. Gold equities, generally speaking — exploration stocks, producing companies” — Ross Beaty

With Ross’ comments in mind, we asked our Twitter followers if they can think of a bearish scenario for gold. By the time the poll closed, a majority of about 75 percent said they can’t, although one commenter said the fact that the yellow metal is followed by “a lot of small investors” could be negative.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

We’re going to finish with psychedelics this week. This market has slowly been gaining steam, and investors are wondering how to identify the best companies.

This week INN’s Bryan Mc Govern asked experts for their due diligence tips, and their responses were interesting — Matt Carr of the Oxford Club said he uses COMPASS Pathways (NASDAQ:CMPS) as an industry benchmark; however, it’s important to remember that even though it’s one of the more advanced players, the company is still relatively early in the process.

“I wouldn’t even say that we’re in the earliest innings of a game, because I don’t even think we’re actually on the field quite yet” — Matt Carr, the Oxford Club

As psychedelics companies move forward, evaluating them should become easier. Matt pointed out that many are following the path laid out by biotech and pharma companies, meaning it will be key to watch for clinical trials and partnerships with major institutions.

“I want to see those deals be made with major research institutions, clinical trials moving forward and having positive results from those trials, (because) those are going to lead to big jumps in share price” — Matt Carr, the Oxford Club

If you’ve invested in psychedelics stocks, tell us in the comments what you’re looking for.

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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.