This CEO's Sentiment On Gold Turned Bullish, Here's Why
(Kitco News) - Nolan Watson, President, CEO and Director of Sandstorm Gold, feels confident in the gold space for the first time in years, due to a host of fundamental factors coming together in gold’s favor.
“For the first time in a long time I feel all of the signs, everything is lining up to back gold,” Watson told Kitco News on the sidelines of the Vancouver Resource Investment Conference.
Spot gold fell more than 1% in 2018, but has trended higher towards the end of the year, with prices closing at the highest level since June.
According to Watson, gold prices are still held back by a lack of capital.
“We're not seeing the flow of funds yet, so share prices are still really low. Companies’ share prices are down and out. I think it’s a good time to invest in the gold space,” Watson said.
Watson’s comments come as Newmont announced its plans to acquire Goldcorp earlier this month, and he said investors can expect more mergers to come.
“I think we are going to see more consolidation in the space,” he said. “I don’t think it’s because the executives know anything that the rest of us don’t, but effectively what’s going on is, the whole financial markets around the world are changing and it’s not just in metals and mining.”
Watson said that investor capital is shifting from active institutional investing to passive funds like ETFs.