Gold Bulls Are Everywhere - Ultimate Gold Panel
The consensus on gold is that interest is back.
Experts on the Ultimate Gold Panel at the Vancouver Resource Investment Conference unanimously agreed that sentiment on the precious metals has turned more bullish.
With central banks like China buying gold for the first time in years and funds that were previously not interested in gold starting to add the metal to their portfolio, investors have been showing more confidence.
Frank Holmes, CEO of U.S. Global Investors, noted that gold is benefiting from the “great unwind” of quantitative easing, which has created a cascade of tailwinds for gold.
“This QE unwinding is so disruptive to the stock market, and you could see that when QE3 came in, all of a sudden gold was not moving with this debt creation, and now it is. We also have the trade wars, and the concern that rates are peaking and they’re going to fall, the dollar will fall dramatically, and like in a blink of an eye, gold will be $1,500 or $1,600 [an ounce],” Holmes said.
Peter Hug, Global Trading Director of Kitco Metals, pointed out that while investors are concerned gold has not been moving to all-time highs, like $1,900 an ounce, long-term investors of gold would have realized a steady annual rate of return had they held the yellow metal.
“People fail to see that if you take January 2009 in Canadian dollar terms and compare it with January 2019 in Canadian dollar terms, you would have received a 7% annualized return every year,” Hug said.
Spot gold fell 1% in 2018, but has since rebounded, climbing 6.7% year-to-date in 2019.