(The speakers participate in a Q&A panel at the November 2019 Metals Investor Forum)
Have we reached peak gold, or is there more to go?
That was the biggest question on the minds of analysts and investors at the Metals Investor Forum this past weekend. Hundreds descended on the JW Marriot Parq hotel in Downtown Vancouver to try to get their hands-on key nuggets of metals market wisdom, as well as a sneak peak at some up-and-coming resource companies.
Though there was a focus on all precious metals, the leading discussion topic for the weekend was gold prices. After peaking around US $1,550/oz in early September, gold prices have since hovered just below $1,500/oz and recently dropped closer to $1,450/oz.
Does this mean that the recent gold rally is already over? Maybe, but according to at least one of the speakers in attendance, that pause looks to be temporary. In his presentation, former banker and noted metals investor Jay Taylor observed that if current patterns hold and gold prices don’t dip below $1,425/oz, he estimates that gold prices will likely head to $1,700/oz.
He was joined in that estimate by two of the other speakers in attendance, Gwen Preston of Resource Maven and Jordan Roy-Byrne of The Daily Gold. The other speakers were more cautious in their estimates, including Greg McCoach of the Mining Speculator and Eric Coffin of HRA Advisories, but across the board still saw gold prices heading modestly higher.
The other question investors wanted to know was what other metals are worth investing in, and palladium dominated the secondary conversation. It’s no surprise, since the precious metal has spiked to above $1,700/oz and is currently the hottest precious metal.
The speakers definitely had a positive outlook on palladium, but they were mixed on what would happen for projects next. If the current price held as a new long-term standard (which was the large consensus), there’s a growing expectation that the market will look to develop more projects. Some of the speakers, however, believed the high prices may inadvertently start driving automobile makers (which use palladium as a material for catalytic converters) to switch to the currently cheaper platinum.
Overall, the largest takeaway from the weekend was that, given the uncertainty in global markets and potential for an impending recession, precious metals are a good place to be. The Metals Investor Forum returns to Vancouver and the Rosewood Hotel Georgia in 2020 on January 17 - 18 before heading to Toronto for its annual February edition.
Stockhouse will be on-hand at the event to get a pulse on the mining market and see who’s hot. If you’d like to also attend the event in-person, free registration is available here.
New to investing in Gold? Check out Stockhouse tips on How to Invest in Gold Stocks and some of our Top Gold Stocks.
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