Gold Is Like A Pimple Ready To Explode: John Doody

Even if he doesn’t know when exactly it will happen, Gold Stock Analysts editor John Doody says gold is headed higher. Doody says 25% of mine production comes from Russia and China, and that portion doesn’t enter the market. “It’s like a big pimple that is coming to a head and I don’t know exactly when that’s going to happen but it’s going to explode,” he says. “I think the pimple is going to burst this year and where the prices go, who knows? But it’s going to go higher.” Doody says the much anticipated Federal Reserve rate hikes will just be a chance for the central bank to make noise in the market. “They will take out their gun (and) shoot a bullet into the ground so everyone hears the sound of an interest rate increase, might be a quarter of a percent, if it was any more than that I would take the gun and shoot myself,” he says. “I think they will do a token increase and that’s it.” Looking at currencies, Doody says the weaker peripheral currencies compared to the U.S. dollar are helping miners in foreign jurisdictions. “When they translate their cash costs of production back into U.S. dollars, they’re falling. So the miners are going to earn more money this year than last year,” he says. (show less)

Even if he doesn’t know when exactly it will happen, Gold Stock Analysts editor John Doody says gold is headed higher. Doody says 25% of mine production comes from Russia and China, and that portion doesn’t enter the market. “It’s like a big pimple that is coming to a head and I don’t know exactly when that’s going to happen but it’s going to explode,” he says. “I think the pimple is going to burst this year and where the prices go, who knows? But it’s going to go ... (read more)

On The Spot

On The Spot
Editor-in-Chief Daniela Cambone puts some of the A-list names in the commodities space 'on the spot'. From key political & economic leaders to metal market opponents, she has guests from all over the globe answer some of the most challenging questions surrounding the resource industry. Tune in to hear what the elite have to say about the hottest topics in the industry.

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