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 goldâ€™s favor.
â€śFor the first time in a long time I feel all of the signs, everything is lining up to back gold,â€ť 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.
â€śWe're not seeing the flow of funds yet, so share prices are still really low. Companiesâ€™ share prices are down and out. I think itâ€™s a good time to invest in the gold space,â€ť Watson said.
Watsonâ€™s comments come as Newmont announced its plans to acquire Goldcorp earlier this month, and he said investors can expect more mergers to come.
â€śI think we are going to see more consolidation in the space,â€ť he said. â€śI donâ€™t think itâ€™s because the executives know anything that the rest of us donâ€™t, but effectively whatâ€™s going on is, the whole financial markets around the world are changing and itâ€™s not just in metals and mining.â€ť
Watson said that investor capital is shifting from active institutional investing to passive funds like ETFs.