John Feneck: Gold Setup is "Beautiful," New All-time High to Come

TL;DR

Portfolio manager John Fenick shares insights on the factors driving gold prices, the potential for a new all-time high in gold, the impact of geopolitical events on gold, and opportunities in mining stocks.

Transcript

I'm Charlotte McLoud with investing news.com and here today with me is John fenick portfolio manager and consultant at fenick Consulting thank you so much for joining me great to have you here thanks Char nice to see you again of course and you know it hasn't been too long since we last spoke but there is a lot to catch up on so I think where we'll... Read More

Key Insights

• 🤣 Gold has established a new floor and demonstrated bullish price action following the March financial crisis.
• 🏅 Geopolitical events, such as the conflict in Israel, have added to the bullish case for gold as investors seek safe-haven assets.
• 💪 Investing in mining stocks with strong insider ownership and strategic vision can offer opportunities for outsized gains.
• ✋ The potential for a new all-time high in gold and a shift in silver's trading dynamics make mining stocks an attractive investment.
• 🌸 Tax loss selling presents opportunities to buy mining stocks at discounted prices.
• 🎁 The trend of heavily produced commodities in China, such as uranium and tungsten, presents investment opportunities due to potential supply disruptions.
• 🥺 Patient value investing and focusing on undervalued mining stocks can lead to successful investments in the sector.

Questions & Answers

Q: What are the key factors driving the price of gold currently?

The March financial crisis established a new floor for gold, and the metal has seen continued bullish price action. The recent geopolitical events and the potential for a new all-time high in gold next year further support its price.

Q: How have recent geopolitical events impacted gold prices?

Geopolitical tensions, such as the conflict in Israel, have boosted the demand for gold as investors seek safe-haven assets. These events have added to the bullish case for gold and increased investor interest in the metal.

Q: What types of mining stocks are worth considering?

Fenick suggests focusing on mining stocks that have a plan to weather the current market conditions and are not looking to sell at lower prices due to takeovers. Companies like Cardero Resources and Shez Resources, which have strong insider ownership and a strategic vision, are worth considering.

Q: What is the outlook for gold and silver prices?

Fenick believes that gold will reach a new all-time high next year, and silver may start trading more like a precious metal rather than an industrial metal. The ratio between the two metals suggests that silver could become more attractive as an investment.

Summary & Key Takeaways

• Gold has experienced a new floor and demonstrated bullish price action following the March financial crisis. It has remained above $1900 for five consecutive months, which is unprecedented in history.

• Recent geopolitical events, such as the conflict in Israel, have added to the bullish case for gold as investors seek safe-haven assets.

• Fenick recommends investing in gold stocks that have a plan to weather the current market conditions and are not looking to sell at lower prices due to takeovers.