VIDEO — Gwen Preston: Gold to Benefit in This Multi-Metal Bull Market
“Whenever you have a multi-metal market, that’s a far stronger phenomenon than a gold-only market,” said Gwen Preston of Resource Maven.
After declining for the first few months of the year, the gold price is trending up once again, even making it past the US$1,900 per ounce mark over the last couple of weeks.
Gwen Preston of Resource Maven explained that she’s positive on what’s ahead for the yellow metal in part because the outlook for the broader commodities sector seems bright.
“Whenever you have a multi-metal market, that’s a far stronger phenomenon than a gold-only market,” she said in an interview with the Investing News Network.
Preston expects some near-term consolidation in gold, but thinks the fall could bring a big move.
“Does that take us halfway through the US$1,900s? Does that take us to US$2,000? I don’t know,” she said. “But I’m pretty bullish on this market, so I think in the next few years as this gold market progresses we’re going to see gold above US$2,000 — I’m pretty confident on that.”
In terms of gold stocks, Preston pointed out that they are still historically cheap relative to the price of gold, meaning that there’s significant potential for investors to profit.
“There’s a lot of upside ahead if we just look at the past and how gold miners are valued relative to the price of gold,” she commented. “There’s multiples ahead for gold miners just to catch up to historic ratios for their valuations vs. the price of gold, let alone should the price of gold continue to rise.”
With the future for gold and the wider metals market looking positive, investors may find it difficult to choose where to put their money. Preston said it’s important for each individual to figure out their investment style and determine what parts of the market are most interesting to them.
“I really emphasize that there’s a huge amount of opportunity ahead in this market across the risk spectrum,” she said. “You can do very well with the lower-risk entities as well.”
Watch the interview above for more from Preston on gold price drivers and how to approach the sector.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.