Maria Smirnova: Gold Outlook Strong in 2023, Silver Swing Factor to Watch

After a flat performance in 2022, the outlook for gold looks more promising this year.

Maria Smirnova, portfolio manager and chief investment officer at Sprott Asset Management, said she doesn't think the US Federal Reserve will be able to engineer a soft landing — and that should be positive for the yellow metal.

She sees three factors at play right now that in the past have consistently led to hard landing scenarios. Those are central bank tightening, banks tightening their lending standards, and spiking food and energy inflation.

"Because we're thinking that the economy will deteriorate … I think gold has a really good outlook," she said.

Smirnova also spoke to the Investing News Network about silver, saying that its fundamentals are strong. She reminded investors that demand for the white metal is split fairly evenly between industrial and investment end uses, but said it's the latter that can really move the price. And in 2023, she sees investment demand from the west as particularly important.

"I think the swing factor will be that investment demand from the west," she said, noting that the silver price tends to take off when bar and coin demand is high and exchange-traded fund inflows are also strong. It would also help for the market to get clarity on the Fed's next steps, as anticipation of higher interest rates is weighing on investors.

"I think it won't take much, it's not a very big market. And so I wouldn't be shocked if we had a nice run in silver," she said.

Smirnova also spoke about where opportunity lies among gold and silver stocks, saying that she still sees the small- and mid-cap companies as the place to be. "I think there's been some very positive developments in the industry that are not being recognized right now. So from that perspective we are encouraged as to the outlook for mining equities," she said.

"And of course, as we've spoken about, we have a very positive outlook on gold and silver bullion prices. So, between those two, we're pretty confident that there's some good returns to be had going forward."

Watch the interview above for more from Smirnova on gold and silver.

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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.