What Are Adrian Day's Gold Market Predictions for 2019?

TL;DR

Adrian Day anticipates a positive year for gold in 2019, driven by increased market volatility and the need for a portfolio hedge. He expects gold stocks, particularly juniors, to gain momentum once gold breaks above $1300. He also critiques the Goldcorp-Newmont deal for its low valuation and highlights investment opportunities in companies like EVN, Metalla, and Riverside.

Transcript

I'm Priscilla Vera with the investing News Network and here with me today is Agent day of agent day Asset Management Adan thank you so much for joining us well thank you for having me all right so we're here at the start of 2019 at the V conference uh my first question for you today is how are you feeling about gold for for 2019 I'm feeling very po... Read More

Key Insights

• 🦔 Gold is expected to perform well in 2019 due to increasing volatility and the need for a hedge in portfolios.
• 🏅 Gold stocks have lagged gold but are predicted to perform better once gold breaks out above $1300.
• 😘 The Goldcorp-Newmont deal has garnered criticism for selling at a 16-year low in price, suggesting lack of confidence in the stock's future or a desire to capitalize on severance pay.
• 🏦 Quantitative easing tightening and central bank actions have significant implications for the stock market and could be positive for gold.
• 💪 Copper market is expected to be strong due to scarcity of major deposits and lengthy timeline for new production.
• ❓ EVN, Metalla, and Riverside are suggested as investment opportunities, with EVN undervalued and Metalla offering dividends and potential growth.
• 😃 M&A activity among big mining companies may see a pause, but mid-tier and smaller producers could engage in acquisitions.
• 👋 Investors interested in prospect generators may consider Riverside, a company with good management and potential for joint ventures.

Questions & Answers

Q: What are the key factors that have held gold back in recent years?

The stock market's strong performance and increasing financial asset volatility that led investors to feel that they did not need gold in their portfolios.

Q: Will gold stocks see better performance in 2019?

Yes, gold stocks are expected to perform better this year, especially once gold breaks out above $1300. Juniors are predicted to start moving once this breakout occurs.

Q: What are the consequences of quantitative easing tightening for gold?

If central banks start tightening, it will have a negative effect on the stock market. However, if the Federal Reserve and central banks pause their tightening efforts, it will be positive for gold.

Q: Are there any other commodities to watch for in 2019?

Copper is highly recommended due to the scarcity of major copper deposits and the lengthy timeline from discovery to production. Demand and prices are expected to remain strong for the next few years.

Summary & Key Takeaways

• Adrian Day expresses positivity towards gold for 2019, citing a potential pullback in the short term due to solved government shutdown or trade agreement, but overall bullish on gold due to increasing volatility and the need for a hedge in portfolios.

• He believes that gold stocks will perform better this year, with juniors expected to move once gold breaks out above $1300 and highlights the value in some junior gold stocks.

• Adrian Day criticizes the Goldcorp-Newmont deal, stating that Goldcorp is selling itself at a 16-year low in price, indicating either a lack of confidence in the stock's future or a desire to take advantage of severance pay.

• He expects a pause in M&A activities among big mining companies after recent mergers, but possible activity among mid-tier or smaller producers.

• Adrian Day discusses the consequences of quantitative easing tightening on the stock market and sees a positive impact on gold if central banks pause their tightening efforts.

• He highlights his bullish stance on copper due to the scarcity of major copper deposits and the lengthy process from discovery to production, leading to strong prices for the next few years.

• In terms of investment suggestions for the junior mining space, Adrian Day recommends EVN, stating that the current stock price undervalues the cash on the balance sheet and the value of the company's royalty on Omana, and Metalla, a junior royalty company with producing royalties and dividend payment. He also mentions Riverside as a good prospect generator with potential investment opportunities.