As the gold price takes a breather below US$2,000 per ounce, investors are wondering when it will take off again.
Chris Temple, founder, editor and publisher of the National Investor, shared his macroeconomic outlook and his views on gold, explaining how the yellow metal rose to the US$2,000 mark and what three factors will take the price higher.
“There’s three things that have to happen similarly to 2008 in my view for there to be a sustained move up in gold, which will also finally take the gold stocks with them because people will see the momentum going,” he told the Investing News Network.
The first element is that the US Federal Reserve has to pivot — and by that Temple means a real pivot, not a pause.
“Something needs to make them come out and say, ‘We’re done. And not only are we done, but we stand ready to support the economy, the system or whatever’ … that’s what we need to hear from the Fed, (and) we’re not close to that,” he said.
The second ingredient is that the economy needs to be bogged down more as the Fed pivots and starts printing money; the third is that other avenues for investors must be closed off — in other words, distractions need to be removed.
“You need to see those three things,” he emphasized. “I think they’re coming, (but) they’re not going to all come on the same day or the same week. And I think we’re talking months rather than years before we see that.”
Temple also spoke about uranium, saying there’s not a single better story that he can see right now. While he has reasons for not wanting to predict how high the gold price could go, he said he feels comfortable making a call on uranium prices.
“In the next one to two years — and this I will put a number on, because I’ve got a much better idea of this — we’re going to see US$100 a pound again for uranium inside of two years,” he said during the interview.
Watch the video above for more from Temple on gold, uranium and more.
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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.
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