Mining industry leaders said on Monday, January 20 at the Vancouver Resource Investment Conference they are going for the gold as 2020 kicks off into high gear.
“We are in the early stages of a gold bull market,” said Rick Rule, CEO of Sprott U.S. Holdings Inc. (TSX:SII) “[The bull run] begins with gold, and then leads to the beginnings of mergers and acquisitions.”
2019 was a fantastic year for gold, as it rose from US$1,300 per ounce to more than US$1,500. Gold continued rising, approaching US$1,600 in early January 2020 as tensions simmered between the United States and Iran.
Investors went into gold – not the U.S. dollar – when the Iranian conflict intensified, said Peter Schiff, president and CEO of Euro Pacific Capital. (www.europac.net) “The world prefers gold to dollars,” he added.
Gold closed today above US$1,550, according to Kitco News.
Investors are now shifting into the gold space, noted Grant Williams, senior advisor of Vulpes Investment Management (www.vulpesinvest.com), based in Singapore. “Buying and holding gold is always a good decision,” he added. “Gold is an emotional asset.”
Frank Holmes, CEO and chief investment officer of U.S. Global Investors (NASDAQ:GROW), noted the importance of the U.S., China and India economies, as positive economic conditions are correlated to gold demand around the world.
If gold leads, silver follows and moves faster, Rule explained.
“Silver has an enormous amount of potential, as cellphone-enabled metals will lead to a market surprise demand factor,” added David H. Smith, senior analyst for The Morgan Report (www.themorganreport.com).
Smith advised investors to look into the gold/silver/bitcoin trifecta between now and 2022.
“Gold is an extremely healthy market right now,” Rule stated. “It’s not too hot, not too cold – it’s just right.”
Figure 1: 1-Year Gold Price Chart
