VIDEO — Kal Kotecha: Gold Price Holding Up Well, Time to Watch for Buying Opportunities

Kal Kotecha: Gold Price Holding Up Well, Time to Watch for Buying Opportunitiesyoutu.be

Gold's performance has disappointed some market participants this year, but according to Dr. Kal Kotecha of Junior Gold Report, the yellow metal is holding up well compared to other assets.

Speaking at the Prospectors & Developers Association of Canada (PDAC) convention, Kotecha said that looking back over the last 20 years, gold has outperformed major indexes like the S&P 500 (INDEXDJX:.DJI).

"A lot of people want to see gold at US$5,000 and US$10,000 (per ounce), kind of like how bitcoin rose quite a bit. But gold is a different beast in itself," he said. "So in my opinion gold is doing well."

Speaking about overall market turmoil, Kotecha noted that the definition of a recession is two negative quarters of GDP growth, and said poor monetary and fiscal policy decisions have created a difficult economic environment.

"I feel the government has pumped in so much money. That's a big part of GDP, and at this point that's going to be negated by a lot," he told the Investing News Network on the sidelines of the convention. "The consumer spending in my opinion will also be negated by a lot, so GDP is bound to go down."

Kotecha said that keeping cash on hand can be a good strategy for investors. Referring back to March 2020, when COVID-19 caused major stock declines, he explained that circumstances like that can be a key buying opportunity.

"Those are the times that in my opinion people can make a lot of money by putting money into assets — as in their favorite junior mining stocks or other stocks," he said.

Watch the interview above for more from Kotecha on gold and the outlook for the US economy. You can also click here for our recap of PDAC, and here for our full PDAC playlist on YouTube.

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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.